Balance of Payments

Distinguish between Autonomous items and Accommodating items.

Distinguish between 'trade deficit' and 'current account deficit'.

Distinguish between 'Current Account Deficit' and 'Current Account Surplus'.

Differentiate between the concepts of 'demand for domestic goods and services' and 'domestic demand for goods and services'. 

Define Trade surplus. How is it different from the Current account surplus?

Give the meaning of the balance of payments.

What will be the effect of foreign investments in India on the exchange rate? Explain.

In which sub-account and on which side of the balance of payments account, will foreign investments in India be recorded? Give reasons.

Where will the sale of machinery to abroad be recorded in the Balance of Payments Accounts? Give reasons.

Explain the meaning of balance of payments deficit.

What is current account deficit in the balance of payments? 

Give the meaning of balance of trade.

Distinguish (a) between current account and capital account, and (b) between autonomous transactions and accommodating transactions of balance of payments account.

Explain the distinction between autonomous and accommodating transactions in balance of payments. Also explain the concept of balance of payments ‘deficit’ in this context.

Distinguish between: (i) Balance of Trade and Balance of Payments; (ii) Current Account and Capital Account

What do you mean by capital account? Briefly discuss its components.

What is meant by current account? Explain its various components.

What is the meaning of Balance of Payments? What are its main components? Explain them briefly.

Trade Deficit must exist if a country is facing a situation of Current Account Deficit’. Defend or refute the statement, with valid argument.

Define Balance of Payments. Discuss briefly the components of current account.