Home
Class 12
ECONOMICS
Giving reasons explain where "charity to...

Giving reasons explain where "charity to foreign countries" is recorded in BOP accounts.

Text Solution

Verified by Experts

Charity to foreign countries is recorded in the current account of BOP because it is transfer payment. It is enterd on the debit side of current account as it corresponds to outflow of foreign exchange.
Promotional Banner

Topper's Solved these Questions

  • BALANCE OF PAYMENTS

    RADHA BHUGANA|Exercise CONCEPTUAL QUESTIONS|6 Videos

  • BALANCE OF PAYMENTS

    RADHA BHUGANA|Exercise HIGHER ORDER THINKING SKILLS|7 Videos

  • BALANCE OF PAYMENTS

    RADHA BHUGANA|Exercise MULTIPLE CHOISE QUESTIONS|12 Videos

  • AGGREGATE DEMAND, AGGREGATE SUPPLY AND RELATED CONCEPTS

    RADHA BHUGANA|Exercise UNSOLVED NUMBERICAL|10 Videos

  • Banking

    RADHA BHUGANA|Exercise Short Answer Type Questions|2 Videos