In the context of Indian economy, the Balance of Payments typically covers ______ year/years for recording the transactions.
Show answer & explanation
Correct answer: A
Explanation
Correct Answer:
Option 1: One
Explanation:
The Balance of Payments is a record of a country's international transactions over a specific period (typically one year). It encompasses all transactions involving goods, services, investments, and capital. It helps in understanding a country's economic status and its foreign trade balance.
Additional Facts:
Option 1: Correct Answer.
Option 2: It is not two years.
Option 3: Five years is incorrect.
Option 4: Six years is incorrect.
Potential Questions for Upcoming Exams:
Question: What is the Current Account?
Answer: Trade transactions
Question: What is the Capital Account?
Answer: Investment transactions
Question: What is Foreign Currency?
Answer: The currency of another country
Question: What is the IMF?
Answer: An international organization