Multiple choice

Which of the following items is called a visible item in the balance of payment?

  1. Export of the commodities

  2. Freight charges of the shipping

  3. Capital investment by the foreigners

  4. Government expenditure in foreign countries
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A Correct answer
Explanation

Visible items in Balance of Payments refer to trade in goods (commodities) - exports and imports of physical merchandise that can be seen and recorded at customs. Invisible items include services (freight, insurance), investment income, and transfers. Government expenditure abroad is a transfer, not trade.

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