Q. 1. (a) Mr. A is planning to buy a bond which is priced at Rs 2000. He would receive Rs 220 at the end of one year as principle plus interest. Mr. A to buy this bond? Explain your answer. b)What constitutes the current account of the balance of paymentaccount of a country? c) Explain the "Fundamental Balance of Payment Identity"? How does the official settlement balance ensure this identity?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Q. 1. (a) Mr. A is planning to buy a bond
which is priced at Rs 2000. He would
receive Rs 220 at the end of one year as
principle plus interest. Mr. A to buy this
bond? Explain your answer.
b)What constitutes the current account of
the balance of paymentaccount of a
country?
c) Explain the "Fundamental Balance of
Payment Identity"? How does the official
settlement balance ensure this identity?
Transcribed Image Text:Q. 1. (a) Mr. A is planning to buy a bond which is priced at Rs 2000. He would receive Rs 220 at the end of one year as principle plus interest. Mr. A to buy this bond? Explain your answer. b)What constitutes the current account of the balance of paymentaccount of a country? c) Explain the "Fundamental Balance of Payment Identity"? How does the official settlement balance ensure this identity?
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