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InterviewSolution
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State components of current account of balance of payment account. |
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Answer» Components of current account 1. Exports and imports of goods (merchandise transactions or visible trade): These includes exports and imports of goods only payments for imports of goods is recorded on the debit side and the receipt from exports is recorded as on credit side for example: exports of tea, jute etc and imports of computer, petroleum etc. 2. Exports and imports on services: Invisible transaction these include transaction in services such as travel, banking, insurance etc. Payments of these services are recorded on the negative side (debit) and receipts on the positive side (credit). 3. Unilateral or unrequired transfers to and from abroad: Unilateral transfers refers gift, donation personal remittances and other one way transactions receipts of unilateral transfers from rest of the world is shown on the credit side and unilateral transfers to rest of the world on the debit side. |
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