An Indian businessperson buys shares in a British car company. This transaction will be reflected in :
Balance of Trade, but not in Balance of Payments.
Balance of Payments, but not in Balance of Trade.
both Balance of Payments and Balance of Trade.
neither Balance of Payments nor Balance of Trade.
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC CAPF – 2023
– Balance of Trade (BOT) primarily records international trade in goods.
– Buying foreign shares is a financial investment, recorded in the Capital/Financial Account of the BOP.