Q28 ASSERTION (A): Purchase of second hand machinery from abroad
is not recorded in balance of payment. REASON (B):Sale and purchase
of second hand goods from abroad are not included in the estimation
of National income.
Answers
answer: both assertion and reason are true and the reason is the correct explanation of assertion.
Answer:
The (A) given here is incorrect, but the (B) is true. This means Assertion is true, but the Reason is wrong.
Explanation:
Balance of Payment is basically a statement, which has records of all money related transactions which are made between citizens of country and the remaining world. This means BOP or Balance of Payment includes or consist of all the records of imports and exports within the country and the ideal situation here, in the BOP would be when imports are equal to export. National Income, on the contrary, refers to the sum of the average income produced by every working citizen or individual belonging to a particular nation and it has absolutely nothing to do with BOP.
Hence, Assertion is wrong whereas Reason is right.