UPSC Exam > UPSC Videos > Indian Economy (Prelims) by Shahid Ali > External Sector (BOP) - Economics, UPSC IAS Exam Preparation
External Sector (BOP) - Economics, UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
|
36 videos|62 docs|78 tests
|
FAQs on External Sector (BOP) - Economics, UPSC IAS Exam Preparation Video Lecture - Indian Economy (Prelims) by Shahid Ali
| 1. What is the meaning of the term "External Sector (BOP)" in economics? |  |
Ans. The term "External Sector (BOP)" refers to the part of a country's economy that deals with its international transactions. It includes trade in goods and services, capital flows, and financial transfers between a country and the rest of the world. The Balance of Payments (BOP) is a record of all these transactions.
| 2. What is the significance of the External Sector (BOP) in a country's economy? | |
Ans. The External Sector (BOP) plays a crucial role in a country's economy. It reflects the economic relationships between a country and the rest of the world and provides important information about the country's international competitiveness, economic stability, and sustainability of its growth. It helps policymakers in formulating appropriate economic policies and assessing the impact of global economic events on the country.
| 3. What are the components of the External Sector (BOP)? | |
Ans. The External Sector (BOP) consists of three main components: current account, capital account, and financial account. The current account records the trade in goods and services, income flows (such as wages, interest, and dividends), and unilateral transfers (such as foreign aid). The capital account records capital transfers, such as debt forgiveness and migrants' transfers. The financial account records financial investments and liabilities, such as foreign direct investment and portfolio investments.
| 4. How is the External Sector (BOP) balance determined? | |
Ans. The External Sector (BOP) balance is determined by the net inflow or outflow of foreign exchange resulting from the country's international transactions. If the value of exports of goods and services, income receipts, and capital inflows exceeds the value of imports, income payments, and capital outflows, the BOP will have a surplus. Conversely, if the value of imports, income payments, and capital outflows exceeds the value of exports, income receipts, and capital inflows, the BOP will have a deficit.
| 5. What are the implications of a surplus or deficit in the External Sector (BOP)? | |
Ans. A surplus in the External Sector (BOP) indicates that a country is exporting more than it is importing, earning foreign exchange and accumulating foreign assets. This can lead to a strengthening of the country's currency, increased foreign reserves, and improved economic stability. On the other hand, a deficit in the BOP indicates that a country is importing more than it is exporting, resulting in a drain of foreign exchange and accumulation of foreign liabilities. This can lead to a depreciation of the country's currency, depletion of foreign reserves, and potential economic instability.
Related Exams
About this Video
|
4.89/5 Rating |
|
Dec 21, 2024 Last updated |
Video Description: External Sector (BOP) - Economics, UPSC IAS Exam Preparation for UPSC 2024 is part of Indian Economy (Prelims) by Shahid Ali preparation.
The notes and questions for External Sector (BOP) - Economics, UPSC IAS Exam Preparation have been prepared according to the UPSC exam syllabus.
Information about External Sector (BOP) - Economics, UPSC IAS Exam Preparation covers all important topics for UPSC 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for External Sector (BOP) - Economics, UPSC IAS Exam Preparation.
Introduction of External Sector (BOP) - Economics, UPSC IAS Exam Preparation in English is available as part of our Indian Economy (Prelims) by Shahid Ali for UPSC & External Sector (BOP) - Economics, UPSC IAS Exam Preparation in
Hindi for Indian Economy (Prelims) by Shahid Ali course. Download more important topics related with notes, lectures and mock test series for
UPSC Exam by signing up for free.
Description
Video Lecture & Questions for External Sector (BOP) - Economics, UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali - UPSC full syllabus preparation | Free video for UPSC exam to prepare for Indian Economy (Prelims) by Shahid Ali.
Information about External Sector (BOP) - Economics, UPSC IAS Exam Preparation
Here you can find the meaning of External Sector (BOP) - Economics, UPSC IAS Exam Preparation defined & explained in the simplest way possible.
Besides explaining types of External Sector (BOP) - Economics, UPSC IAS Exam Preparation theory, EduRev gives you an ample number of questions to practice External Sector (BOP) - Economics, UPSC IAS Exam Preparation tests,
examples and also practice UPSC tests.
|
36 videos|62 docs|78 tests
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Semester Notes
,ppt
,UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
,shortcuts and tricks
,MCQs
,Viva Questions
,study material
,Free
,Summary
,Important questions
,UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
,past year papers
,Objective type Questions
,Extra Questions
,External Sector (BOP) - Economics
,Previous Year Questions with Solutions
,Sample Paper
,External Sector (BOP) - Economics
,mock tests for examination
,practice quizzes
,Exam
,UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
,video lectures
,External Sector (BOP) - Economics
;
Study External Sector (BOP) - Economics, UPSC IAS Exam Preparation on the App
Students of UPSC can study External Sector (BOP) - Economics, UPSC IAS Exam Preparation alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the External Sector (BOP) - Economics, UPSC IAS Exam Preparation,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of External Sector (BOP) - Economics, UPSC IAS Exam Preparation is prepared as per the latest UPSC syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup