Are the following statement true or false? Give reason.
An increase in demand for imported goods raises the supply for foreign exchange.
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False. Explanation:
Supply of foreign exchange will decrease in order to make the payment for imported goods.
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Giving reason, state whether the following statement are true or false.
In balance of payments, repayment of loans by Indian Government to American Government will be reflected as debit item.
Giving reason, state whether the following statement are true or false.
Foreign exchange received on account of export of sugar will be recorded in current account.
Giving reason, state whether the following statement are true or false.
Borrowing by government from World Bank to finance the BOP deficit will be recorded in the capital account.