12th Class Economics Financial Market / वित्तीय बाजार Question Bank

done Assertion and Reason - Balance of Payments Total Questions - 5

• question_answer1)

  Assertion [A] Accommodating transactions are undertaken to make equilibrium in BoP account.

  Reason [R] Accommodating items are also called above the line items.

  A)
  Both Assertion [A] and Reason [R] are correct and Reason [R] is the correct explanation of Assertion (A) done clear
  B)
  Both Assertion [A] and Reason [R] are correct, but Reason [R] is not the correct explanation of Assertion (A) done clear
  C)
  Assertion [A] is correct, but Reason [R] is incorrect done clear
  D)
  Both Assertion [A] and Reason [R] are incorrect done clear
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• question_answer2)

  Assertion [A] Balance of Payments is the accounting record of economic transactions only.

  Reason [R] Surplus balance of payments is an indicator of excess of outflows over inflows of foreign trade.

  A)
  Both Assertion [A] and Reason [R] are correct and Reason [R] is the correct explanation of Assertion (A) done clear
  B)
  Both Assertion [A] and Reason [R] are correct, but Reason [R] is not the correct explanation of Assertion (A) done clear
  C)
  Assertion [A] is correct, but Reason [R] is incorrect done clear
  D)
  Both Assertion and Reason [R] are incorrect done clear
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• question_answer3)

  Assertion [A] Purchase of Machinery from rest of the world is an economic transaction of capital account of BoP.

  Reason [R] Any transaction that impacts the assets or liabilities of a country are recorded on current account of BoP.

  A)
  Both Assertion [A] and Reason [R] are correct and Reason [R] is the correct explanation of Assertion (A) done clear
  B)
  Both Assertion [A] and Reason(R) are correct, but Reason [R] is not the correct explanation of Assertion (A) done clear
  C)
  Assertion [A] is correct, but Reason [R] is incorrect done clear
  D)
  Both Assertion [A] and Reason [R] are incorrect done clear
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• question_answer4)

  Assertion [A] A country always tries to balance the BoP, i.e. balance in current account equals to balance in capital account.

  Reason [R] Balanced BoP indicates stable economic relation with rest of the world.

  A)
  Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A] done clear
  B)
  Both Assertion [A] and Reason [R] are true, but Reason [R] is not the correct explanation of Assertion [A] done clear
  C)
  Assertion [A] is true, but Reason [R] is false done clear
  D)
  Assertion [A] is false, but Reason [R] is true done clear
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• question_answer5)

  Assertion [A] Capital of balance of payment is non-recurring in nature.

  Reason [R] Capital transfers affects the assets and liabilities of a country.

  A)
  Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A]. done clear
  B)
  Both Assertion [A] and Reason [R] are true, but Reason [R] is not the correct explanation of Assertion [A]. done clear
  C)
  Assertion [A] is true, but Reason [R] is false. done clear
  D)
  Assertion [A] is false, but Reason [R] is true. done clear
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