Question

45. Assertion (A) Purchase of Machinery from rest of the world is an economic transaction of capital account of BoP. Reason (R) Any transaction that impacts the assets or liabilities of a country are recorded on current account of BoP. 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 Reas 57 / |E| correct, but Reason (R) is not explanation of Assertion (A)
(c) Assertion (A) is correct, but Reason (R) is incorrect
(d) Both Assertion (A) and Reason (R) are incorrect​

Answer 1

Answer:

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Answer 2

Answer:

The ans is D Both A and R are incorrect

Explanation:

Purchase of machinery is a transaction of current account of BOP and does not affect asset or liability. Any transaction that impacts asset and liability of country is recorded on Capital account of BOP

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