Study the following figure carefully and choose the correct alternative to fill in the blank:
Balance of Payments Account
Study the following figure carefully and choose the correct alternative to fill in the blank:
Balance of Payments Account
Show Hint
- Investments
- Trade of Services
- External Borrowings
- External Assistance
The Correct Option is B
Solution and Explanation
The Balance of Payments (BoP) Current Account records trade in goods (merchandise), trade in services, and transfer payments.
Option (B): Trade of services is the correct term to complete the given flowchart.
Options (A), (C), and (D): Investments, external borrowings, and external assistance belong to the Capital Account, not the Current Account.
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Questions Asked in CBSE CLASS XII exam
- \[ \begin{array}{|c|l|r|} \hline \textbf{S.No.} & \textbf{Items} & \textbf{Amount (in ₹ Crore)} \\ \hline (i) & \text{Tax Receipts} & 1,200 \\ \hline (ii) & \text{Revenue Expenditure} & 3,700 \\ \hline (iii) & \text{Non-Tax Receipts} & 2,000 \\ \hline (iv) & \text{Recovery of Loans} & 145 \\ \hline (v) & \text{Capital Expenditure} & 500 \\ \hline (vi) & \text{Disinvestment} & 120 \\ \hline (vii) & \text{Interest Payments} & 1,070 \\ \hline \end{array} \]
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