An Indian businessperson buys shares in a British car company. This transaction will be reflected in: (a) Balance of Trade, but not in Balance of Payments. (b) Balance of Payments, but not in Balance of Trade. (c) both Balance of Payments and Balance of T

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Q: 26 (CAPF/2023)
An Indian businessperson buys shares in a British car company. This transaction will be reflected in:
(a) Balance of Trade, but not in Balance of Payments.
(b) Balance of Payments, but not in Balance of Trade.
(c) both Balance of Payments and Balance of Trade.
(d) neither Balance of Payments nor Balance of Trade.

question_subject: 

Economics

question_exam: 

CAPF

The Balance of Payments records all economic transactions between residents of a country and the rest of the world, including the purchase of foreign shares. The Balance of Trade, however, focuses only on the export and import of goods, not financial assets.