Practicing Success
If NDPFC is ₹2500 and Net Factor Income to Abroad is ₹500. What is NNPFC? |
₹1000 ₹2000 ₹1500 ₹3000 |
₹2000 |
The correct answer is option 2: ₹2000 NNPFC = NDPFC + Net factor income FROM abroad. NDPFC = ₹2500 We are given net factor income TO (and not FROM) abroad. Thus, Net factor income FROM abroad = -500 (negative value as it represents outflow of income) NNPFC = NDPFC – Net factor income to abroad = ₹2000 |