CUET Preparation Today
Which of the following best defines 'Unilateral Transfers' in the context of international transactions? |
Funds transferred internationally as loans for a specified tenure and interest rate. Trade transactions involving goods and services between two countries. Payments made by one party without expecting any return in the future. Investments made by a country in the stock market of another country. |
Payments made by one party without expecting any return in the future. |
The correct answer is Option (3) → Payments made by one party without expecting any return in the future. Unilateral Transfers refer to one-way payments made between countries where the sender does not expect anything in return. These are commonly seen in:
These are recorded in the current account of the Balance of Payments. |
