INTERNATIONAL

FINANCIAL MANAGEMENT

PROBLEMS ON BALANCE OF
PAYMENT

1
 INTERNATIONAL FINANCIAL MANAGEMENT
BALANCE OF PAYMENT (BOP)
From the following information of India, prepare the
statement of BOP component wise:
(Rs in crores)

Exports : 1418.64
Imports : 1809.18
Unilateral transfers from India to other countries :
64.39
Unilateral transfers to India from other countries :
10.24
Direct Investments by India : 152.44
Direct investments by other countries in India :
287.68
Portfolio Investment by India : 124.94
Portfolio investment by other countries in India :
474. 39
Other investments by India : 303.27 2
 Credit Debit

INTERNATIONAL
ANSWER: FINANCIAL
1) Current Account:
MANAGEMENT
(a) Exports 1418.64
(b) Imports -1809.18
(c) Unilateral Transfers - 64.39
10.24
Trade deficit (A) - 444.69
2) Capital Account : BALANCE
OF
(a) Direct Investments - 152.44
PAYMENT
287.68
(BOP)
(b) Portfolio Investments - 124.94
BALANCE OF 474.39
(c)PAYMENT FOR THE
Other Investments - 303.27
YEAR 2012-13 262.64
Capital surplus (B)
444.06
3) Statistical Discrepancy (C )
0.73
3
4) Official reserve account (D)
 INTERNATIONAL FINANCIAL MANAGEMENT
Q. From the following information of India, prepare the statement of BOP component
wise: (Rs
in crores)
Exports:
Merchandise : 811.10
Services: : 336.10
Factor income : 369.00
Imports:
Merchandise : 1473.10
Services : 291.10
Factor income : 344.90

Unilateral transfers from India to other countries : 89.40

Unilateral transfers to India from other countries :
16.40
Direct Investments by India : 248.50
Direct investments by other countries in India : 115.50
Portfolio Investment by India:
Equity securities : 93.00
Debt securities : + 2.20
Portfolio investment by other countries in India
Equity securities : 57.60
Debt securities : 736.80
Other investments by India : 483.70
4
Other investments by other countries in India : 524.30
 INTERNATIONAL FINANCIAL MANAGEMENT
ANSWER: (BOP PROBLEM)

CURRENT ACCOUNT credit debit

(1) EXPORTS 1516.20

(1.1) Merchandise 811.10

(1.2) Services 336.10

(1.3) Factor Income 369.00

(2) IMPORTS - 2109.10

(2.1) Merchandise - 1473.10

(2.2) Services - 291.10

(2.3) Factor income - 344.90

(3) UNILATERAL TRANSFERS - 89.40

16.40
Balance of - 665.90
current account
5
 INTERNATIONAL FINANCIAL MANAGEMENT
ANSWER:
credit debit

Balance of current -665.90

account (b/f)
CAPITAL ACCOUNT

(4) Direct investment -248.50

115.50
(5) Portfolio investments

(5.1) Equity securities 57.60 - 93.00

(5.2) Debt services 736.80 +2.2
(6) Other investments 524.30 - 483.70
Balance of capital 611.20
account
(7) Statistical discrepancy 51.98

(8) Over all balance -2.8

(9) Official reserve 2.8

6