UPSC Prelims 2013 · Question 91 of 99

UPSC Prelims 2013 question on Balance of Payments

The balance of payments of a country is a systematic record of:

  1. All import and export transactions of a country during a given period of time, normally a year
  2. Goods exported from a country during a year
  3. Economic transaction between the government of one country to another
  4. Capital movements from one country to another
Show answer

Answer: A. All import and export transactions of a country during a given period of time, normally a year

Analysis

The Balance of Payments (BoP) is a comprehensive record of all economic transactions between the residents of a country and the rest of the world during a specific period, usually one year. It includes trade in goods and services, capital flows, remittances, and financial transfers. Therefore, the option referring to all import and export transactions is the closest and most appropriate definition among the given choices.

Extra UPSC info

The BoP consists mainly of the Current Account and the Capital/Financial Account.

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