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    Question

    Which of the following transactions should be included

    in the Balance of Payment?
    A A person working in Gulf region sending money to his family in Kerala Correct Answer Incorrect Answer
    B Priyanka Chopra sending her earning in USA to India Correct Answer Incorrect Answer
    C A migrant labour from in Punjab sending money to his family in Bihar Correct Answer Incorrect Answer
    D Both a and b Correct Answer Incorrect Answer
    E Both a and c Correct Answer Incorrect Answer

    Solution

    As we know, BoP includes all transaction among the residents of a country and the rest of the world. So in first two cases, money is crossing national borders. All remittances are recorded in BoP. But in third case the transaction is between two residents. Both the migrant labour and his family are in India. Money is not crossing border in this transaction. Thus it is not a part of Balance of Payment.

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