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With reference to the Asian Clearing Union (ACU), consider the following statements:
1. It is a payment arrangement between the central banks of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka.
2. It is headquartered in Delhi.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
With reference to the Asian Clearing Union (ACU), consider the followi...
Explanation:
Asian Clearing Union (ACU)
The Asian Clearing Union (ACU) is a payment arrangement established in 1974 between the central banks of nine Asian countries.
Statement 1: It is a payment arrangement between the central banks of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka.
This statement is correct. The ACU includes the central banks of these nine countries, allowing them to settle payments for trade transactions among member countries using the ACU mechanism.
Statement 2: It is headquartered in Delhi.
This statement is incorrect. The ACU is headquartered in Tehran, Iran, not in Delhi.
Therefore, the correct answer is option 'A', which is "1 only". The Asian Clearing Union plays a significant role in promoting trade and economic cooperation among its member countries by facilitating the settlement of payments in local currencies, thereby reducing reliance on third-party currencies like the US dollar.
Asian Clearing Union (ACU)
The Asian Clearing Union (ACU) is a payment arrangement established in 1974 between the central banks of nine Asian countries.
Statement 1: It is a payment arrangement between the central banks of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka.
This statement is correct. The ACU includes the central banks of these nine countries, allowing them to settle payments for trade transactions among member countries using the ACU mechanism.
Statement 2: It is headquartered in Delhi.
This statement is incorrect. The ACU is headquartered in Tehran, Iran, not in Delhi.
Therefore, the correct answer is option 'A', which is "1 only". The Asian Clearing Union plays a significant role in promoting trade and economic cooperation among its member countries by facilitating the settlement of payments in local currencies, thereby reducing reliance on third-party currencies like the US dollar.
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With reference to the Asian Clearing Union (ACU), consider the followi...
Asian Clearing Union (ACU)
- The Asian Clearing Union, or ACU, is a payment arrangement between the central banks of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka.
- Under the ACU, member central banks settle payments for intra-regional transactions on a net basis. This reduces the use of foreign exchange reserves and transfer costs.
- Headquartered in Tehran, Iran, the ACU was established in December, 1974.
Hence only statement 1 is correct.
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With reference to the Asian Clearing Union (ACU), consider the following statements:1. It is a payment arrangement between the central banks of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka.2. It is headquartered in Delhi.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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