[Solved] Which of the following transactions would NOT be recorded in the Balance of Payments accounts? — Ans: Domestic sale of goods between two Indian companies | Economic Awareness

Economic Awareness - Sectors of Indian Economy

Which of the following transactions would NOT be recorded in the Balance of Payments accounts?

ATransfer of money as a gift from a resident to a non-resident

BDomestic sale of goods between two Indian companies

CSale of shares of a domestic company to a foreign investor

DPurchase of machinery from abroad for domestic production

Step-by-Step Solution

Step 1: Understand what BoP records
The Balance of Payments records all economic transactions between residents of a country and the rest of the world.
Step 2: Analyze each option
Transfer of money as a gift to a non-resident is a current transfer in the Current Account. Purchase of machinery from abroad is an import in the Current Account. Sale of shares to a foreign investor is a Financial Account transaction. Domestic sale of goods between Indian companies is a domestic transaction and not recorded in BoP.
Final Answer:
Domestic sale of goods between two Indian companies → Option B
Quick Check:
BoP excludes purely domestic transactions ✅

Quick Trick: BoP excludes purely domestic transactions.

Common Mistakes:

MISTAKES

Master "Sectors of Indian Economy" in Economic Awareness

Start learning the concept with an interactive lesson.

More Economic Awareness Quizzes

Which of the following transactions would NOT be recorded in the Balance of Payments accounts?