Question

How does the BoP account represent imports in terms of currency flow?

a.

Credit entry

b.

Debit entry

c.

No impact

d.

Both credit and debit entries

Posted under IC 89 Management Accounting

Answer: (b).Debit entry Explanation:Imports increase the supply of the domestic currency, leading to a debit entry in the BoP account as it represents a use of foreign currency.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How does the BoP account represent imports in terms of currency flow?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What are the three main components of the Balance of Payments (BOP) account?

View solution

Q. What transactions are recorded in the Current Account of the BOP?

View solution

Q. Where are transactions resulting in changes in foreign assets and liabilities recorded in the BOP?

View solution

Q. What is the difference between the Capital Account and the Reserve Account in the BOP?

View solution

Q. What does Merchandise trade in the BOP cover?

View solution

Q. How are exports valued in the Merchandise trade in the BOP?

View solution

Q. What is the Balance on Merchandise Trade Account in the BOP?

View solution

Q. When and where was the International Monetary Fund (IMF) formally created?

View solution

Q. What was the primary objective of creating the IMF?

View solution

Q. How do countries contribute funds to the IMF?

View solution

Q. What is one of the key activities of the IMF to improve the economies of its member countries?

View solution

Q. What are the objectives of the IMF according to its role in the global monetary system?

View solution

Q. How many countries are currently members of the IMF?

View solution

Q. What were the IMF's two primary functions initially?

View solution

Q. When did the IMF's role fundamentally change?

View solution

Q. What was the IMF's main role after the introduction of Floating Exchange Rates?

View solution

Q. What is the new challenge for the IMF in its major function?

View solution

Q. What is the IMF's major function in its renewed roles and responsibilities?

View solution

Q. Under the policy of conditionality, what can low-income countries borrow on?

View solution

Q. What is one of the major functions of the IMF?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Biochemistry

Delve into the intricate world of Biochemistry with our Biochemistry category....

Enzyme Technology

Unlock the power of enzymes with our Enzyme Technology category. Explore enzyme...

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

Renewable Energy

Explore the sustainable future of energy with our Renewable Energy category. Dive...

Cell Biology

Delve into the fascinating world of Cell Biology with our specialized category....

Engineering Materials

Discover the building blocks of engineering with our Engineering Materials category....

Avionics Engineering

Soar into the world of aviation technology with our Avionics Engineering category....

Human Anatomy and Physiology

Embark on a journey through the human body with our Human Anatomy and Physiology...

Food Engineering

Explore the fascinating world of Food Engineering with our specialized category....