If NDPFC is ₹2500 and Net Factor Income to Abroad is ₹500. What is NNPFC?
Answer & explanation
Correct answer: option 2
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
= ₹2,500 – ₹500
= ₹2000