Page 2 - HA-Balance of Payment

(Short answer type questions-3/4 marks)
11. Distinguish between current account and capital account. 3
12. In which sub-account and on which side of BOP account, will 3
foreign investment in India be recorded? Give reasons.
13. Explain the components of Current account of BOP. 4
14. What will be the effect of the following on the BOP? 4
a) Make in India program.
b) Import of oil

15. Distinguish between Autonomous transaction and 4
Accommodating transaction.
16. Classify the following transaction will be recorded in current 4
account or capital account. Give reason.
a) Purchase of shares of Reliance by Microsoft
b) Imports of computers from USA
c) Borrowing from World Bank
d) Gifts received from a friend in Canada.
17. Distinguish between Foreign Direct investment and Foreign 4
institutional Investment (portfolio investment)
18. What is meant by official reserve transactions? Discuss its 4
importance in BOP.