The worked question on this page is original educational practice. It is not represented as a question from an official previous-year examination paper.
01 / UNDERSTANDING
Review the question
Write an original external-transaction case that rewards recognising the limits of the supplied data. Include a foreign loan receipt as a distractor that is not an export. An original checkpoint is: What is the partial net export balance from the two stated transactions? Supported answer: A deficit of 20 units. Explain the decisive fact, then alter one condition and solve again. This is an original practice method, not a claim that the question appeared in an official past paper.
02 / UNDERSTANDING
The concept in context
A single transaction can have counterpart entries; a deficit in one category is not the same as an accounting system failing to balance. A useful study check is to identify goods, services and financial transactions separately, then ask which counterpart or omitted entries remain. Explain why the method fits the stated facts before applying it to a changed situation.
03 / UNDERSTANDING
A worked learning case
A fictional resident firm exports software services worth 50 and a resident business purchases foreign machinery worth 70. In a deliberately partial current-account exercise containing only these transactions, net exports are minus 20. How the payment gap is financed belongs to a further accounting question. The example is not a complete balance-of-payments statement.
ORIGINAL EDUCATIONAL PRACTICE
Try it before you check.
What is the partial net export balance from the two stated transactions?
Show the answer and reasoning
A deficit of 20 units.
The specified exports contribute 50 and imports subtract 70, giving 50 minus 70, or negative 20. This describes only the selected trade transactions. A complete external account would require additional transactions and counterpart entries, so the example cannot determine the overall financial account or reserve movement on its own.
Two traps to watch for.
- Calling every foreign inflow an export receipt.
- Inferring the entire external account from a partial trade balance.
YOUR TOPIC-SPECIFIC LEARNING MAP
Learn from the attempt
Identify goods, services and financial transactions separately.
Calculate only the balance supported by the data.
Ask which counterpart or omitted entries remain.
Explain the idea, apply it to a new situation, then check what changed in your reasoning.
BANKERS TUTORIAL · SOURCE NOTES
Keep the source alongside your notes.
Official links provide subject context and authoritative reference material. This guide’s explanation, scenario and question are original Bankers Tutorial learning content.
- ncert.nic.in https://ncert.nic.in/textbook.php?leec1=ps-6
- www.rbi.org.in https://www.rbi.org.in/scripts/DataDefinition.aspx
For RBI preparation, check the current official notice before relying on changing dates, rules or examination requirements.
