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Consider the following statements about India’s Balance of Payments (BoP)
1.NSSO compiles and publishes BoP data for India.
2.BoP records all economic transactions between residents of a country and rest of the world.
3.Capital account balance comprises the balance of trade of goods and services, factor incomes, and net cash transfers.
4.Current account balance reflects net change in ownership of national assets.
Which of the above given statements is/are correct?
2 only
1 and 3 only
2, 3 and 4 only
All of the above
NSSO compiles and publishes BoP data for India: This statement is incorrect. The compilation and publication of India's Balance of Payments (BoP) data is done by the Reserve Bank of India (RBI) and not by the National Sample Survey Office (NSSO).
BoP records all economic transactions between residents of a country and the rest of the world: This statement is correct. The Balance of Payments accounts for all economic transactions between the residents (individuals, businesses, and government) of a country and the rest of the world over a specific time period.
Capital account balance comprises the balance of trade of goods and services, factor incomes, and net cash transfers: This statement is incorrect. The Capital Account in the Balance of Payments includes capital transfers and the acquisition or disposal of non-produced, non-financial assets.
Current account balance reflects the net change in the ownership of national assets: This statement is incorrect. The Current Account in the Balance of Payments reflects transactions in goods, services, primary income, and secondary income. It does not directly capture changes in the ownership of national assets.
Therefore, the correct answer is "2 only."
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