2013 GS Paper I, all questions
UPSC Prelims 2013 · GS Paper I
Question 41: Economy and Social Development
The balance of payments of a country is a systematic record of
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
AnswerUPSC’s answer is (a).
The balance of payments is a systematic record, for a period usually of a year, of a country's economic transactions with the rest of the world: trade in goods and services, transfers and capital flows. Option (a) is the closest to this broad record. The others cover only a part: exports of goods alone, dealings between governments alone, or capital movements alone.
Why each option is right or wrong
- (a) Correct. It is the broad record of a country's external transactions over a period, normally a year.
- (b) Wrong. Exports are only one item; imports and other flows are also recorded.
- (c) Wrong. Private transactions also enter the record, not only those between governments.
- (d) Wrong. Capital movements are only one account of the balance of payments.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2013, General Studies Paper I, Series A. The paper on upsc.gov.in.