Question

pple company has made investment in India leading to flow of foreign exchange. Inspite of it

there was a current account deficit in the balance of payments. The deficit was settled by the

government through borrowings from IMF. [ Economic News 2020]

7. Autonomous items are also known as “ below the line “ items. (true/false) (1)

8. ....... (autonomous/accommodating) items of trade maintain the balance in BOP account (1)

9. Investment made by Apple company in India is to generate ....... (profit/envy) (1)

10. Borrowings by government from IMF will be recorded in the ........(capital/current)​

Answer 1

Answer:

8. Accommodating

9.Profit

10. Capital