Match List-I with List-II:
| List-I | List-II | ||
|---|---|---|---|
| (A) | Deposits of non-resident Indians in Indian banks | (I) | Investment income |
| (B) | Income of an Indian software firm from clients abroad | (II) | Portfolio investment |
| (C) | Interest paid by an Indian firm on a loan from abroad | (III) | Banking capital |
| (D) | Purchase of shares of Indian companies by foreign institutional investors | (IV) | Net non-factor income |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Each item is a line of the BoP: two sit in the current account and two in the capital account.
| List-I | List-II | Reason |
|---|---|---|
| (A) Deposits of non-resident Indians in Indian banks | (III) Banking capital | The sample BoP lists non-resident deposits under banking capital. |
| (B) Income of an Indian software firm from clients abroad | (IV) Net non-factor income | Software services are non-factor income. |
| (C) Interest paid by an Indian firm on a loan from abroad | (I) Investment income | Interest is earnings on capital, a part of net factor income. |
| (D) Purchase of shares of Indian companies by foreign institutional investors | (II) Portfolio investment | FII buying is portfolio investment in the capital account. |
NCERT (2026-27):
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