11th Commerce - Book Back Answers - Chapter 28 - English Medium Gudies

 

 

Plus One / 11th Commerce - Book Back Answers - Chapter 28 - English Medium

Tamil Nadu Board 11th Standard Commerce - Chapter 28: Book Back Answers and Solutions

    This post covers the book back answers and solutions for Chapter 28 – Commerce from the Tamil Nadu State Board 11th Standard Commerce textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

    We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

    By going through this material, you’ll gain a strong understanding of Commerce  Chapter 28 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

• 1 Mark Questions: Choose the correct answer, Fill in the blanks, Identify the correct statement, Match the following 
• 2 Mark Questions: Answer briefly 
• 3, 4, and 5 Mark Questions: Answer in detail

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 11 students! Prepare well and aim for top scores. Thank you!

Chapter 28: BALANCE OF TRADE AND
BALANCE OF PAYMENTS

I. Choose the correct answer

1. The Statement which discloses a record of transactions between the residents of one country and residents of foreign country.
(a) Balance of Payment            
(b) Balance of Trade
(c) Statement of Receipts and Payments
(d) Accounting Statement
Answer Key:
(a) Balance of Payment

2. The Balance of Payments councils consists of
(a) Current Account
(b) Capital Account
(c) Receipts and Payments Account
(d) Both Current Account and Capital Account
Answer Key:
(d) Both Current Account and Capital Account


3. Foreign capital long- term loan and foreign currency reserve are recorded under
(a)Official Capital
(b) Private Capital
(c) Banking Capital
(d) Both Private and Official Capital
Answer Key:
(b) Private Capital

4. The term official capital includes
(a) RBI holdings of foreign currencies
(b) Special Drawing Rights held by the Government
(c) Both A and B
(d) Foreign Investment
Answer Key:
(c) Both A and B
 
5. Balance of payments surplus indicates    
(a) Exports are more than the Imports
(b) Imports are more than Exports
(c) Exports and Imports are at Equilibrium
(d) Exports and Imports are above Equilibrium
Answer Key:
(a) Exports are more than the Imports

 

II. Very Short answer questions

1. What do you mean by Balance of Payments?

• Balance of payment refers to a systematic record of all economic transactions between the residents of one country and the residents of foreign countries during a particular period of time.

2. What do you mean by Balance of Trade?

• Balance of trade denotes the difference between the value of import and the value of expor during a year.
• If the export of a country exceeds its imports, it shows favourable balance of trade

III. Short answer questions

1. What are the credit items shown in current accounts? (any 3)

• Goods Export
• Invisible Exports
• Transport service sold abroad
• Banking service sold abroad
• Insurance service sold abroad
• Income received on loan and investment made in foreign countries
• Expenses incurred by foreign tourists in India.

2. State the components of Capital account.

• Private Capital
• Banking Capital
• Official Capital

 

IV. Long answer questions

1. Write any five features of Balance of Payments.

• It is prepared for a period of three months or twelve months, i.e., usually 12 months
• It contains all receipts and payments both visible and invisible
• It includes all economic transactions both recorded on current account and capital account
• Economic transactions are recorded according to double entry principle of book keeping.
• It indicates a country’s position in foreign trade.

2. Distinguish between balance of payment and balance of trade. (any 5)

Nature	Balance of Payment	Balance of Trade
1. Capital Transactions	It records capital transactions	It does not record capital transactions
2. Nature of Transactions recorded	It records both the transactions relating to goods and services	It records only transactions relating to merchandise
3. Indicator Economic Status	It is true indicator of economic performance of an economy	It is not true indicator of economic prosperity or economic relations of country.
4.Correcting Unfavourableness	Unfavourable balance of payment leads to deficit in balance of payment situation.	Unfavourable balance of trade can be converted into favorable balance of payment
5. Net Position	It always remains balanced in the sense that receipt side is made equal to payment side	It may be at favorable or unfavourable or in equilibrium state.