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Home› UPSC CSE› Prelims GS Paper I› 2013 questions› Question 44

UPSC CSE Prelims

Subject: Economy Chapter: External Sector & Foreign Trade

2013 PYQ

Question 44

The balance of payments of a country is a systematic record of

Choose one answer Aall import and export transactions of a country during a given period of time, normally a year Bgoods exported from a country during a year Ceconomic transaction between the government of one country to another Dcapital movements from one country to another

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Correct answer: A

Correct Option: A Explanation: The balance of payments records economic transactions between residents of a country and the rest of the world during a specified period. Option-wise Analysis: A: Correct - Closest intended answer: imports and exports are central recorded external transactions, although the full BoP is broader. B: Incorrect - Wrong: goods exports are only one small component of the current account. C: Incorrect - Wrong: private cross-border transactions also enter the BoP, not just those between governments. D: Incorrect - Wrong: capital movements are only one part of total external transactions. Review Note: Option A is incomplete: BoP also includes services, primary/secondary income and financial/capital flows. Interpret “import and export transactions” broadly to retain the supplied key.

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