State whether the following statements are true or false. Jan 09, 2021 - Short Answer Questions (with Solutions) - Balance of Payments Commerce Notes | EduRev is made by best teachers of Commerce. Distinguish between fixed and flexible foreign exchange rate. What functions are performed by foreign exchange market? Capital receipts and capital payments form part of capital transfers. i.e. When price of foreign currency falls, imports are cheaper. Then record whether the indicated currency appreciates or depreciates as a result of the change, by circling the appropriate word. dipper8550. This is a discussion on BOP questions within the General Corrections forums, part of the Philosophy of Custody & Corrections category; What is the role of a Sergeant, Lieutenant, and Captain in a correctional setting? What are its main features? If you find it difficult reading and understanding the information in this study guide, you will probably have difficulty reading and understanding your written exam as well. 8. current account and capital account. Q: Why should I get commercial business insurance? Difference between Autonomous Items and Accommodating items is detailed here below: Q.30. Components of Current Account (iv) Speculative purchase of home currency by NRIs/Foreigners. 12. (ii) Devaluation occurs in a fixed exchange rate system. Sources of demand for a foreign currency: (i) For imports payment is to be made in foreign currency. A country is said to be having its balance of payment in equilibrium when the sum of its current account and non reserve capital account equals zero which means current account deficit is financed entirely by international borrowings without any movement in the official reserves of the country. a. In the dip da dip da dip? This interactive well control quiz contains 25 questions related to Tricky Questions and Well Control Equipment.Additionally, this content is based on both IWCF and IADC well control. iii. Exports of goods less imports of goods refers to balance of trade. 14. 2. Components of current account are as follows: Learn about the interview process, employee benefits, company culture and more on Indeed. Ans. The balance of payments situation has improved post-liberalization; Select the correct answer using the codes given below: a) 3 only. = 220 – 200 crore = Rs. It is very important that companies prioritize what they are selling and how they are selling. (All India 2009,2008) Q.9. Accommodating items, also termed as ‘below the line items’, are those items of BoP that are not determined by considerations of profit but to restore identity of BoP. (ii) Provides credit for foreign business: Foreign exchange market makes available credit for foreign transactions. only the visible items of economic transactions is termed as Balance of Trade. What does balance of payments account show? This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Current Account   + Capital Account = – (Official Reserve). Government buys and sells currencies according to the needs of the country Flexible or Floating Exchange Rate. 1 decade ago. In the short run, there can be difference in demand and supply of foreign exchange. BoP Deficit    When   the payments of a       country   on   account   of autonomous transactions exceed the receipts of a country on account of autonomous transactions, this difference is termed as BoP deficit. (i) Investments It includes investments to and from abroad in the form of FDI and Fll. In other words, a trade deficit does not necessarily imply that a country is losing its foreign reserves— the difference is accounted by long term capital movements. 4. Demand for domestic goods includes both, domestic demand as well as that from abroad. 2. Applicants will answer vacancy specific questions necessary to evaluate an individual qualifications for the specific job to which they are applying. Disclaimer Copyright, Share Your Knowledge Disequlibrium in BoP Balance of Payments account are classified into current account and capital account. People demand foreign exchange for the following purposes: ADVERTISEMENTS: (i) To buy better products from other countries (ii) To make financial investments in other countries (iii) […] Demand for export will rise which means more supply of foreign currency. Revision BOP, GDP and Inflation BOP Question and your answers! Explain why. ADVERTISEMENTS: Ans. And the best part? Distinguish between Balance of Trade and balance on current account of Balance of Payments. b) 2 and 3. c) 1 and 2. d) 1 and 3. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Balance of Payments The Balance of Payment (BoP) of a country is a systematic record of all economic transactions between its residents and residents of foreign countries. Hiring Process Interviews Working Hours Benefits Job Opportunities Working Culture Working Environment CEO Salaries Hiring Age Part Time Jobs Promotion Work Life Balance Background Check Dress Code Shifts. Which one of the following is not a cause but a consequence of Globalisation? goods. Q.4. Here are 10 frequently asked questions (and answers) about BOP insurance; it’ll help you find what you’re looking for. Effects of disequilibrium in Balance of Payment are: (i) Economic credibility of a country obviously goes down. It summarises the exports and imports and other international transaction of a country with other countries. BOP account shows a country’s inflows and outflows of foreign exchange. The demand curve for foreign exchange is downward sloping since there is an inverse relationship between price and demand of foreign exchange. As you read the self-assessment questions, you'll find many are followed by a secondary question: "If you selected 5, please give example." accounted for only 32 percent of annual dollar sales since it was priced lower than BOP! Ans. Answer some questions and I'll recommend a song. iii. BAM! (a) To reduce the value of home currency in other currency. Who put the bomp . Balance of Payment is a systematic record of all economic transactions of a country with rest of the world in a given period of time which is usually one year. Current Account of BoP Current account is that account of BoP, which records exports and imports of visible and invisible items and unilateral transfers. Similarly if exchange rate rises, the demand for foreign exchange falls. 10. Also explain the concept of balance of payments ‘deficit’ in this context. A country’s BOP to be is and favourable if its total receipts exceed total payments. Subsea BOP Stack Operations BL 0.0981 – Vertical Well Kill Sheet – Hungarian; Subsea BOP Stack Operations BL 0.0981 – Vertical Well Kill Sheet – Norwegian; Subsea BOP Stack Operations BL 0.0981 – Vertical Well Kill Sheet – Polish; Subsea BOP Stack … Ans. Content Guidelines 2. The best way to answer questions about the challenges you are seeking is to discuss how you would like to be able to effectively utilize your skills and experience if you were hired for the job. 1. Ans. Who was that man? Ans. Developed countries are forced to import capital and other services from developed countries. Ans. The exporters and importers have not to operate under uncertainty about the exchange rate. 14. Balance of Trade does not include the export and import of invisible items (services) or capital transfers. (iii) Foreign exchange reserves. TOS4. (Delhi 2014,2010) Find 344 questions and answers about working at Federal Bureau of Prisons. . (ii) Borrowing and lending It includes the borrowings by residents from the residents of abroad (credit item), and sending to the resident of foreign country (debit item). Q.17. Imports become cheaper. 6 bop interview questions. 11. No, concepts of demand for domestic goods and domestic demand for goods are not at all the same. (ii) Social factors Borrowing from abroad are recorded in the capital account (credit side) of Balance of Payments as it is a foreign liability on the country and it is to be repaid with interest. It consists of capital of various kinds e.g., gold. It’s completely free. asked Jun 20 in Sceptre, Eris, R-Series by laurentklein (120 points) Hi, yesterday I was listening to some music (not even loud) and heard a big POP coming from the speakers. This Pop Culture Quiz for Kids contains questions about music, movies, art, and literature such as MTV music channel made its first debut on August 1, 1981. Ans. This raises demand for imports. 8. Kidz Bop Kids - Rye Kidz Bop Kids Live in Concert on Saturday, August 10, at 5 p.m. at Rye Playland (Up to $53.35 Value) The Fine Print. Ans. Adding excess of inflows over the outflows on account of invisibles to the balance of trade is called balance on current account. The Fine Print. I just don't understand. Balance of Trade is in surplus, when the value of export of goods are more than the value of import of goods. I'd like to shake his hand . Then BoP deficit will be Answer. If price of foreign exchange rises, the value of rupee will depreciate which will make domestic goods cheaper. BoP Surplus = R>P, where R = Receipts of the country, P = Payment of the country, e.g., if the receipts of the country is Rs. iii. 0 votes. b. Our Top Ten Questions And Answers for Sales Interviews Bop It XT › Questions & Answers Bop It XT by Hasbro Customer Questions & Answers Find answers in product info, Q&As, reviews There was a problem completing your request. In balance of payments, repayment of loans by Indian Government to American Government will be reflected as debit item. only the visible items of economic transactions, determine the Balance of Trade. Ans. BOP! Show transcribed image text. 2. Recent questions and answers 0 votes. Official reserve transactions means running down country’s reserves of foreign exchange in case of deficit in Balance of Payments by selling foreign currency in foreign exchange market. these are independent. The goods may be domestic or imported, both are parts of domestic demand. Q.23. BoP Surplus   When   the  receipts of the      country   on   account   of autonomous transactions   exceed    the  payments of a      country   on  account   of autonomous transactions, this difference is termed as BoP surplus. In case of surplus, the country can buy foreign exchange and increase its official reserves. (i) Current account of Balance of Payment account records only export and import of goods and services. The current account of balance of payment records imports and exports of goods, services and unilateral transfers. Therefore, this quiz will focus on the closing unit of surface installations. Two parts of Balance of Payments account are as follows: (2 points) Answer – According to Joseph Stiglitz, … The exchange rate also affects the BOP. Borrowing from abroad are recorded in the capital account (credit side) of Balance of Payments as it is a foreign liability on the country and it is to be repaid with interest. ii. (All India 2008) Balance of current account includes the Balance of Trade. When price of a foreign currency falls, the demand for that foreign currency rises. Balance of trade is the difference between exports and imports of … Block Follow. Eris 3.5 not working after BOP sound. When price of foreign currency rises it makes exports cheaper. Surplus under BOT. We do not claim our questions will be asked in any interview you may have. State the components of capital account of balance of payments. (iii) Government may resort to devaluation of its currency to encourage exports and restrict imports whenever the country suffers from continued deficit m BOP. Q.15. 16. Personnel need to fully understand its functions, how to maintain and test it. Current Account + Capital Account + Official Reserve = 0 Explain why. (Delhi 2013) Interest, profit, dividend, royalties etc. (d) Balance of payments. Ans. (All India 2011) Balance of Payment The Balance of Payment (BoP) of a country is a systematic record of all economic transactions between its residents and residents of foreign countries. The net value of all these is the balance of current account. (Delhi 2011; All India 2011,2009) BOP closing unit is one of the well control equipment and it is very critical for the operation because it provides power to operate all the BOP rams. (i)Current account What is balance of payment? (i) Payment for exports are received in foreign currency. Ans. Such imports, being extremely costly can cause major drop in BOP. Who put the dip . (All India 2013) Balance of Trade = Exports of Goods – Imports of goods Balance on current Account = Sum of credit on current account – sum of debits on current account. Add to library 2 Discussion 13. Q.30. (Compartment 2014) a. Investment from abroad is a ‘credit’ item, whereas investment to abroad is a ‘debit’ item. Distinction between Balance of Trade and Balance of Payment is as follows: Q.27. Q.13. accounting questions and answers; Explain Componens OF BOP- (A Pages Minimura, Had- Written) Ruled Copy. Balance of Payment The Balance of Payment (BoP) of a country is a systematic record of all economic transactions between its residents and residents of foreign countries. The Clear Answers and Start Over feature requires scripting to function. Current account balance Current account is that account of BoP, which records exports and imports of visible and invisible items and unilateral transfers. List the items of the current account of Balance of Payments account. Block Follow. Give meanings of trade balance and current account balance. (ii) Exports and imports of invisible items i. Q.34. Autonomous transactions in foreign exchanges are those which are undertaken for their own sake and independent of the State of balance of payments. Distinguish between balance of trade and balance on current account. iv. Ans. Question 8 : Consider the following statements: India’s net exports of goods have a negative balance; India’s net export of services have a positive balance What are the merits of a flexible exchange rate? 13. i. My new favorite songs. Question2: What is Gratuity? Flexible exchange rate is that rate which is determined by the market forces of demand and supply of a foreign currency. Clothing. Q.12. Therefore, their magnitude is determined by the autonomous transactions. Foreign Exchange Rate and Balance of Payments Important Questions for class 12 economics Balance of payments . i. 0 answers 2 views. Balance of Payments The Balance of Payment (BoP) of a country is a systematic record of all economic transactions between its residents and residents of foreign countries. ii. Balance of Trade includes only visible items. Distinguish between Balance of Trade and balance on current account. Difference between Balance of Trade and balance on current account. (iii) Foreign exchange It includes the reserve of foreign currency gold and Special Drawing Rights (SDRs) with the domestic country. It follows that mathematically ,exchange of services between the country. 250+ Chartered Accountant Interview Questions and Answers, Question1: List the five heads of income to calculate Total Income of the Assessee? This leads to deficit in the BOP. Due to ouch psychology, the imports of the former country increase which again triggers disequilibrium. Balance of current account includes balance of visible items, balance of invisible items and balance of unilateral transfer. The Bureau's classification and designation functions are centralized at the Designation and Sentence Computation Center (DSCC), located at the Grand Prairie Office Complex in Texas. The flows of capital can be in the form of borrowings or lending’s to abroad by private sector and government or both. Which transactions determine the balance of trade ? Question While drilling observed total loss circulation, drilling is stopped and water is filled into the wellbore. What is trade balance? What is Balance of Payments account? Balance of Trade includes only visible items. Covering exchange risk is called hedging. form part of investment income and gifts, remittances, etc. In the rama lama ding dong? 4. Ans. BoP Deficit Balance of Trade = Export Goods – Import of Goods Exports, imports etc. ii. Balance of Payments account are classified into current account and capital account. make the exports costlier and decrease in exports. What are official reserve transactions? Q.26. These transactions are not influenced by the foreign exchange position of the country. By 2002 BAT was the market leader in both the home finance and small business markets. 9. Questions & Answers. The major BPO sectors for outsourcing are: IT and … (Delhi 2010c) with – a traditional set of interview questions. Ans. Q.19. (ii) Therefore Government gets rid of problem of disequilibrium of BOP. Please try your search again later. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. Partition, unification of nation also affects the BOP. Fixed exchange rate is the rate fixed by government. In the diagram Dfe DFe and Sfe Sfe are demand and supply curves for dollars which are intersecting at I at which point Rs 50 will be the price of a dollar. Multiple-choice Questions This activity contains 10 questions. (ii) It promotes capital movements. Balance of Payments Identity A brief survey (Because I want to talk about something and perhaps make a … 20 crore. Balance of Payment Are undertaken to cover deficit or surplus in the autonomous transactions. iv. cheaper. So it is a source of its demand. Ans. Ans. An important point to note is that there may be a BOT deficit but a BOP surplus, or vice versa. See what to … This document is highly rated by Commerce students and has been viewed 8166 times. 10 crore. (ii) Tourism abroad becomes costlier and so demand for foreign currency falls. BOP! Answer: A country can run an overall BOP deficit or surplus by engaging in the official reserve transactions. List the transactions of current account of the Balance of Payments. It means that the importers have now to pay less domestic currency to buy one unit worth of foreign currency goods from abroad. The decrease in official reserve of foreign exchange is called the overall BOP deficit. Balance of current account is the difference between sum of credit items and sum of debit items on current account. Q.6. 2. Study Questions (with Answers) Page 4 of 5 2. BoP Deficit = Receipts on account of autonomous transactions < Payments on account of autonomous transactions or 7. Kidz Bop are a series of compilation albums with popular songs covered by kid singers. 5. 13. Therefore, the imbalance is equal to the settlements balance, or the change in the CB's reserve assets. Ans. (b) Current account of BOP. ii. Answer: … (i)Investment to and from rest of the world which includes FDI and FII. ii. Questions Answers Followed questions Following users Followers. Deficit in BoP = Receipts on account of autonomous transactions < Payments on account of autonomous transactions Suppose, the receipts of the domestic country is r 200 crore. Monetary authorities of a country are the ultimate financiers of the deficit in the BOP, or the recipient of any surplus. 2. Components of Capital Account Balance of payment account is based on double entry system of book keeping. Give reasons for your answer. (ii) Invisible items (services) iv. Ans. bop.me is an easy way to expand your brand’s reach and connect your audience with all of your platform content. or Classification of Economic Transactions in BoP It was Barry Mann . Explain the meaning of deficit in balance of payments. Invisible items include different types of services, investment income and unilateral transfers. Foreign exchange rate is the rate at which one currency can be converted into another currency. (Delhi 2009,2008) ii. In the bop shoo bop shoo bop? Distinguish between Balance of Trade account and current account balance of BoP account. Q.33. only the visible items of economic transactions is termed as Balance of Trade. Explain. BOP crisis. 6. Autonomous items, also termed as ‘above the line items’, are those items, which are related to transactions which are determined by considerations of profit (economic motive) and hence, was no concern with the state of BoP. Services, investment income and gifts, remittances, etc Devaluation occurs in a country rest... Like shipping, banking, travel services, etc., foreign currency falls it makes exports investments foreign... Will be asked in any capitalistic country, Trade cycles cause inflation and depression situations:! Capital receipts and Payments are recorded in balance of BOP a German-based pension buys... 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