Match List-I with List-IL
|
List-I (Book/Theory proposed/Characteristic, etc.) |
List-II (Author/Thinker/Name of Theory, etc.) |
|
(A) Autonomous items |
(I) Net of visible trade |
|
(B) Accomodating items |
(II) Above the line items |
|
(C) Balance of trade |
(III) Portfolio investment |
|
(D) Capital account |
(IV) Below the line items |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A)-(II), (B)-(IV), (C)-(I), (D)-(III)
Here's the correct matching:
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(A) Autonomous items - (II) Above the line items: Autonomous items in the balance of payments are independent of the balance of payments itself. They are considered "above the line" items.
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(B) Accommodating items - (IV) Below the line items: Accommodating items, such as changes in foreign exchange reserves, adjust to correct imbalances in the balance of payments. They are considered "below the line" items.
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(C) Balance of trade - (I) Net of visible trade: The balance of trade refers to the difference between a country's exports and imports of goods (visible trade).
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(D) Capital account - (III) Portfolio investment: Portfolio investment, such as the purchase of stocks and bonds in foreign countries, is a significant component of the capital account in the balance of payments.