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.
Borrowing by government from World Bank to finance the BOP deficit will be recorded in the capital account.
Download our app for free and get started
True.Explanation:
Borrowing by the government is a accommodating transaction and it is recorded in the capital account only.
Borrowing by the government is a accommodating transaction and it is recorded in the capital account only.
Download our appand get started for free
Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*
Similar Questions
- 1View SolutionGiving 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. - 2Are the following statement true or false? Give reason.View Solution
Depreciation of Indian rupees will occur when ₹ 55 have to be paid to exchange one US $ instead of present rate of ₹ 50/ $. - 3View SolutionGiving reason, state whether the following statement are true or false.
Autonomous transactions take place in current account only. - 4View SolutionAre the following statement true or false? Give reason.
An increase in demand for imported goods raises the supply for foreign exchange. - 5View SolutionCurrent account is a part of balance of trade. (True/ False)
- 6View SolutionGiving reason, state whether the following statement are true or false.
Accommodating items are also known as 'above the line' items. - 7View SolutionGiving reason, state whether the following statement are true or false.
Accommodating items of trade are undertaken in order to maintain the balance in the BOP account. - 8View SolutionSupply of foreign exchange is positively related to the price of foreign exchange. (True/ False)
- 9View SolutionGiving reasons, state whether the following statements are true or false:
Both depreciation and devaluation of domestic currency have the same meaning. - 10View SolutionDecrease in demand for foreign currency leads to currency depreciation. (True/ False)