Indian investors lend abroad. Answer the following questions (a) In which sub-account and on which side of the Balance of Payments Account such lendin

Monjur Alahi

Indian investors lend abroad. Answer the following questions
(a) In which sub-account and on which side of the Balance of Payments Account such lending is recorded ? Give reasons
(b) Explain the impact of this lending on market exchane rate


0 like 0 dislike
1 views
Share with your friends

1 Answers

Salim Ahmed Kawsar

Call

(i) Indians lending abroad is recorded in Capital Account of BOP Account because it leads to creation of foreign exchange assets. It is recorded on the debit side because it outflow of foreign exchange. (ii) Lending abroad increases demand for foreign exchange. Supply of foreign exchange remains unchanged, exchange rate may rise.

0 like 0 dislike
1 views
Talk Doctor Online in Bissoy App
When the debit side of an account is greater than the credit side, the account shows a debit balance.

This statement is True. While balancing the ledger account the side which is greater is the balance of that account so when the debit side of an account is greater the...

2 Answers 1 views
i. _______ Balance on Nominal Account shows expenses or loss. ii. Cash account always shows _______ balance.

i. debit ii. debit iii. credit iv. credit v. Nominal vi. brought down vii. Drawings viii. ₹ 20,000

2 Answers 1 views
Which of the following will be debited on the Capital Account of India's Balance of Payments Account?

A. an Indian woman buying a Chinese company 

2 Answers 1 views
The longest side of a triangle is three times the shortest side and the third side is 2 cm shorter than the longest side if the perimeter of the trian

Correct Answer - 9 cm Let the length of the shotest side of the triangle be x cm . Then length of the longest side = 3 x cm Length of...

2 Answers 1 views
“Foreign Institutional Investors (FIIs) remained net seller in the Indian capital markets over the last few weeks”. - The Economic Times . State and d

Selling of securities by Foreign Institutional Investors (FIIs) in Indian capital market will lead to fall in the supply of foreign currency in the economy. This situation might lead to...

2 Answers 7 views
Receipts and payments Account is a -  (A) Personal Account  (B) Real Account  (C) Nominal Account 

Correct option is: (B) Real Account

2 Answers 1 views
Receipts and Payments Account usually indicates -  (A) Surplus/deficit  (B) Cash balance  (C) Capital fund  (D) Net profit/loss

Correct option is: (B) Cash balance

2 Answers 1 views
Receipt and payment Account is a summary of -  (A) All capital receipts and payments  (B) All revenue receipts and payments 

Correct option is: (C) All revenue and capital receipts and payments

2 Answers 1 views
General Reserve Account always shows -  (A) Debit balance  (B) Credit balance  (C) Debit & credit balance  (D) None of these

Correct option is: (A) Debit balance

2 Answers 1 views
State whether the following statements are True or False (i) Receipts and Payments Account shows the receipts and payments of revenue nature only. (ii

Correct Answer - (i) False; (ii) False; (iii) True; (iv) False; (v) True (vi) True (vii) False (viii) True (ix) False (x) True (xi) True (xii) True

2 Answers 1 views
X