Economic Awareness - Sectors of Indian Economy
Which of the following transactions would NOT be recorded in the Balance of Payments accounts?
Which of the following transactions would NOT be recorded in the Balance of Payments accounts?
medium Q4 of 15
Step-by-Step Solution
Step 1: Understand what BoP records
The Balance of Payments records all economic transactions between residents and non-residents.Step 2: Analyze each option
Domestic purchase of vegetables in Mumbai market is a resident-resident transaction, excluded from BoP. Software export is services in Current Account. NRI deposit is Financial Account. Gold import by RBI is Current or Financial Account.Final Answer:
Domestic purchase of vegetables in Mumbai market → Option BQuick Check:
BoP excludes purely domestic (resident-resident) transactions ✅
Quick Trick: BoP only for cross-border resident-nonresident transactions.
Common Mistakes:
MISTAKES- Assuming all domestic economic activity enters BoP.
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