Class 12 Exam > Class 12 Questions > Assertion (A): Balance of Payments is the acc...
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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.
Alternatives
Reason (R): Surplus balance of payments is an indicator of excess of outflows over inflows of foreign trade.
Alternatives
- a)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
- b)Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)
- c)Assertion (A) is correct, but Reason (R) is incorrect
- d)Both Assertion (A)and Reason (R)are incorrect
Correct answer is option 'D'. Can you explain this answer?
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Assertion (A): Balance of Payments is the accounting record of economi...
Assertion and Reasoning in Balance of Payments
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.
Explanation:
- The Balance of Payments is a record of all financial transactions made between the residents of a country and the rest of the world in a particular period.
- It is a comprehensive accounting record of all economic transactions, including trade, financial flows, and transfers, between a country and the rest of the world.
- Assertion (A) is correct since the Balance of Payments is an accounting record of all economic transactions.
- The Reason (R) is incorrect since a surplus balance of payments indicates that a country has more inflows of foreign exchange than outflows, not the other way around.
- A surplus balance of payments shows that a country is receiving more income from the rest of the world than it is paying out, which is a positive sign for the country's economy.
- Therefore, the correct answer is option (c) Assertion (A) is correct, but Reason (R) is incorrect.
Conclusion:
The Balance of Payments is an essential economic indicator that helps a country to understand its economic standing in the world. It is a comprehensive record of all economic transactions between a country and the rest of the world, including trade, financial flows, and transfers. A surplus balance of payments indicates that a country is receiving more income from the rest of the world than it is paying out, which is a positive sign for the country's economy.
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.
Explanation:
- The Balance of Payments is a record of all financial transactions made between the residents of a country and the rest of the world in a particular period.
- It is a comprehensive accounting record of all economic transactions, including trade, financial flows, and transfers, between a country and the rest of the world.
- Assertion (A) is correct since the Balance of Payments is an accounting record of all economic transactions.
- The Reason (R) is incorrect since a surplus balance of payments indicates that a country has more inflows of foreign exchange than outflows, not the other way around.
- A surplus balance of payments shows that a country is receiving more income from the rest of the world than it is paying out, which is a positive sign for the country's economy.
- Therefore, the correct answer is option (c) Assertion (A) is correct, but Reason (R) is incorrect.
Conclusion:
The Balance of Payments is an essential economic indicator that helps a country to understand its economic standing in the world. It is a comprehensive record of all economic transactions between a country and the rest of the world, including trade, financial flows, and transfers. A surplus balance of payments indicates that a country is receiving more income from the rest of the world than it is paying out, which is a positive sign for the country's economy.
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Assertion (A): Balance of Payments is the accounting record of economi...
Balance of payments includes all transactions between home country and rest of the world while more of outflow in BoP indicates deficit in BoP.
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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.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A)and Reason (R)are incorrectCorrect answer is option 'D'. Can you explain this answer?
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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.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A)and Reason (R)are incorrectCorrect answer is option 'D'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about 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.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A)and Reason (R)are incorrectCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A)and Reason (R)are incorrectCorrect answer is option 'D'. Can you explain this answer?.
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.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A)and Reason (R)are incorrectCorrect answer is option 'D'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about 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.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A)and Reason (R)are incorrectCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A)and Reason (R)are incorrectCorrect answer is option 'D'. Can you explain this answer?.
Solutions for 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.Alternativesa)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)b)Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)c)Assertion (A) is correct, but Reason (R) is incorrectd)Both Assertion (A)and Reason (R)are incorrectCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 12.
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