NIOS Economics (318) Notes/Answer| Chapter-35| Balance of trade and balance of payments

NIOS Economics (318) Notes/Answer| Chapter-35| Balance of trade and balance of payments. Important questions for NIOS Economics (318) Questions Answers brings you latest queries and solutions with accordance to the most recent pointers SOS . Students will clear all their doubts with regard to every chapter by active these necessary chapter queries and elaborate explanations that area unit provided by our specialists so as to assist you higher. These queries can facilitate students prepare well for the exams thanks to time constraint . NIOS Economics (318) Notes/Answer| Chapter-35| Balance of trade and balance of payments

HS 2nd years Solutions (English Medium)

NIOS Economics (318) Notes/Answer| Chapter-35| Balance of trade and balance of payments

 Intext Questions 

1. Fill in the blanks 

(a) The difference between the value of export of goods and the value of imports of goods is called ________(balance of trade, deficit, profit) 

Ans. balance of trade 

(b) The difference between the value of export of invisible and the value of imports of invisible is called ________(invisible balance, surplus, deficit) 

Ans. invisible balance 

(c) Even since Independence, India has been generally having ________ on balance of trade account and on balance on invisibles account. 

Ans. deficit, surplus 

2. Fill in the Blanks: 

(a) By adding together balance of trade and balance on invisibles, we get________ (balance on current account, balance of payments)

 Ans. balance on current account

(b) For last many years, India has________on its current account balance. (surplus, deficit) 

Ans. deficit 

(c) Current account deficit means that a country has purchased________of goods and services from other countries that what it has sold to them. (more, less) 

Ans. more 

3. Fill in the following blanks:

(a) The capital account of BOP’s record all the inflows and outflows of ________(goods, capital) 

Ans. capital 

(b) The item in the capital account of BOP’s can divided into________ and transaction. (autonomous, accommodation, goods, services) 

Ans. autonomous, accommodation

(c) Autonomous capital flows are ________ on the deficit or surplus on current account of BOP’s. (dependent, independent) 

Ans. independent

(d) The part of deficit on current account which is offset by arranging accommodating capital inflows represents the________in the balance of payments.(deficit, surplus) 

Ans. deficit  

4.State whether the following statements are true or false:

(a) Balance of payment situation is known from the capital account. 

Ans. False

(b) The sum of current account and capital account shows total deficit and surplus. 

Ans. True

(c) Total payment and total receipts of balance of payment are always equal. 

Ans. True

(d) Accommodating transaction bring balance in the balance of payment account. 

Ans. True 

Terminal Exercise 

1. What do you mean by BOT? 

Ans. The difference between the value of exports of goods and value of imports of goods is called balance of trade,

 2. Distinguish between BOT from balance on account of invisibles. 

Ans. The difference between the value of exports of goods and value of imports of goods is called balance of trade. On the other hand, the invisible balance or balance of trade on services is that part of the balance of trade that refers to services and other products that do not result in the transfer of physical objects. Examples include consulting services, shipping services, tourism, and patent license revenues.

 3. Distinguish between current account of BOP’s and capital account of BOP’s.

Ans. Current account of BOP is that part of payment account which shows imports and exports of goods and services and unilateral transfers such as gifts, grants by the government. On the other hand, capital account Of BOP is that part of balance of payment account which shows capital receipts and capital payments i.e. transactions relating to assets and liabilities. 

Current account of BOP implies that current account represents flow items pertaining to specific period of time. On the other hand, capital account Of BOP implies that capital account represents stock items. Capital account shows the changes in the levels of international financial assets and liabilities.

NIOS Class 12th Economics (318) Notes/Question Answer

Chapter Chapters NameLink
Chapter 1Economy and Its ProcessClick Here
Chapter 2Basic Problems of an EconomyClick Here
Chapter 3Economic Development and Indian EconomyClick Here
Chapter 4Statistics: Meaning and ScopeClick Here
Chapter 5Making Statistical Data MeaningfulClick Here
Chapter 6Presentation of Statistical DataClick Here
Chapter 7Statistical MethodsClick Here
Chapter 8Index Numbers (Meanings and Its Construction)Click Here
Chapter 9Index Numbers (Problem and Uses)Click Here
Chapter 10Income FlowsClick Here
Chapter 11National Income: ConceptsClick Here
Chapter 12National Income: MeasurementClick Here
Chapter 13Uses of National Income EstimatesClick Here
Chapter 14What micro EconomicsClick Here
Chapter 15What affects demandClick Here
Chapter 16What affects supplyClick Here
Chapter 17Price determinationClick Here
Chapter 18CostClick Here
Chapter 19RevenueClick Here
Chapter 20Profit maximizationClick Here
Chapter 21Government budgetingClick Here
Chapter 22Money supply and its regulationClick Here
Chapter 23Need for planning in IndiaClick Here
Chapter 24Achievements of planning in IndiaClick Here
Chapter 25Recent economic reforms and the role of planningClick Here

Optical Module – I

Chapter 26AgricultureClick Here
Chapter 27IndustryClick Here
Chapter 28Independence of Agriculture and IndustryClick Here
Chapter 29Transport and CommunicationClick Here
Chapter 30EnergyClick Here
Chapter 31Financial InstitutionsClick Here
Chapter 32Social Infrastructure (Housing, Health and Education)Click Here

Optical Module – II

Chapter 33Direction and composition of India’s Foreign tradeClick Here
Chapter 34Foreign exchange rateClick Here
Chapter 35Balance of trade and balance of paymentsClick Here
Chapter 36Inflow of capital (Foreign Capital and Foreign Aid)Click Here
Chapter 37New trade policy and its implicationsClick Here
Chapter 38Population and economic developmentClick Here
Chapter 39Population of IndiaClick Here

4. Distinguish between accommodating transactions. autonomous and accommodating transactions.

Ans. Following are the difference between autonomous and accommodating transactions

Autonomous transactionsAccommodating transactions
An autonomous transactions are independent of the state of balance of payments account (BOP A/c)An accommodating transactions are undertaken to maintain the balance in BOP account
These transactions take place on both current and capital accounts.These transactions take place only on capital account
These items in BOP refer to foreign exchange transactions which are made independently of the state of the balance of payment, such as profit motive.These items in BOP refer to the transactions which are undertaken to cover deficit or surplus in autonomous transactions.

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