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11th Standard English Medium Commerce Subject Balance of Trade and Balance of Payments Book Back 2 Mark Questions with Solution Part - I updated Book back Questions

Published on: 13/05/2022

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Std: 11th Standard - Commerce

chapter: - Book back Questions

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Questions:

Generic 2

5 x 2 = 10

Mention the components of Banking Capital.

What is the composition of Private Capital?

Define Balance of payments

What do you mean by Balance of Trade?

What do you mean by Balance of Payment?

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Answers Key:

Generic 2

5 x 2 = 10

Banking capital includes movement into external financial asset and liabilities commercial and co-operative banks authorized to dealing in foreign exchange.

Private Capital consists of Foreign Investments, long-term loans, and Foreign Currency Deposits.

According to International Monetary Fund "The balance of payments for given period is a systematic record of all economic transactions taken place during the period between resident of the reporting countries".
(or)
In the words of Dominick Salvatore "The Balance of payment is a summary statement in which principle of all the records of the resident of a nation with the resident of all other nations are recorded during a particular period of time, usually a calendar year."

Balance of Trade denotes the difference between the value of Imports and the value of exports during the year.

Balance of payment refers to a systematic record of all economic transactions between the residents of one country and the residents of foreign countries during a particular period of time. For example: one year.