Question

______ of a country is a systematic statement of all economic transactions of a country with the rest of the world during a specific period typically a year. 
1. Balance of Payment
2. Reverse Repo Rate 
3. Gross Primary Deficit 
4. Gross Fiscal Deficit 

Answer 1

Correct Answer - Option 1 : Balance of Payment

The correct answer is the Balance of Payment.

• Balance of Payment of a country is a systematic statement of all economic transactions of a country with the rest of the world during a specific period typically a year. 

• Balance of Payment(BoP) is the difference between the value of goods exported and the value of goods imported per annum.
• Services are not included in BoP.
• BoP is divided into the current account and capital account.
  • Under the current account, transactions are classified into merchandise (exports and imports) and invisible.
  • The main component of capital account includes foreign investment, loans, and banking capital.

• Reverse Repo Rate 
  • ​It is the rate, at which banks park short-term excess liquidity with the RBI.
• Gross Primary Deficit
  • It is a Gross Fiscal Deficit with fewer interest payments.
• Gross fiscal deficit
  • It is the excess of total expenditure including loans net of recovery over revenue receipts and non-debt capital receipts.