Q: 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.
Correct Answer: (b)
The correct answer is (d) 'neither Balance of Payments nor Balance of Trade.'. This question from the Indian Economy domain tests knowledge of External Sector & Trade.