Name the two principal items of balance of payments.

Solution

Payment for imports and receipts for exports are the two principal items of balance of payments.

Question 46

Write down the sourcess of foreign exchange.

Solution

Sources of foreign exchange are (i) Earning by exporting goods and service and (ii) Remittance by NRIs.

Question 47

Solution

Problem of adverse balance of payments arise when receipts of foreign exchange fall short of their payments.

Question 48

Solution

Fiscal policy refers to revenue and expenditure policy of the government.