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Sandeep Garg Macroeconomics: Class 12 Chapter 12 Solutions

Commerce

Sandeep Garg Macroeconomics: Class 12 Chapter 12 Solutions

Class 12 Macroeconomics Sandeep Garg Solutions Chapter 12 - Balance of Payments

The Balance of Payments is accounted for based on exports and imports of a particular country. So, BOP mainly has the following two components.

Export of Goods
Import of Goods

The fourth answer in class 12 macroeconomics chapter 12 Balance of Payments explains the two components of the BOP.

Sandeep Garg Macroeconomics Class 12 Solutions Chapter 12

The Current Account in BOP includes the records of imports, exports, and unilateral transfers for a country. This covers the following:

Services: Receipts of services exported to the other countries, payments for the purchase of services from the other countries.
Unilateral Transfers: Receipts which the resident of a country receives without paying anything in return. This could include donations, gifts, payments, indemnity, etc.
Incomes: Income from investment or compensation of the employees.

You can go through the answers for the class 12 Sandeep Garg solutions Balance of Payments chapter to get an idea about the Current Account.

Capital Account

The capital account records all the transactions between citizens of a country and the citizens of the other countries, which bring a change in asset or liability. The major components of a capital account are as follows.

Loan
Foreign Investment
Foreign Exchange Reserve
Banking Capital
Monetary Movement

The 6th answer in Sandeep Garg class 12 macroeconomics solutions chapter 12 explains what Capital Account means.

Balance of Trade

Balance of trade is the net difference between export and import of goods. This includes the value of tangible goods or visible transactions only.

Balance of Current Account

Balance of current account measures the difference between import and export of goods and services, including factor services.

Balance of Capital Account

Balance of capital account measures the balance of capital transfers, lending, sale, borrowing, and purchasing stocks of gold and foreign exchange. You will find a detailed explanation of all these accounts in macroeconomics solutions class 12 chapter 12 Sandeep Garg.

Balance of Payments Deficit and Surplus

A deficit in BOP occurs when the total inflow in account transactions is less than the outflow of transactions. The opposite of this would lead to a BOP surplus. In an ideal economy, BOP should have equal inflow and outflow of transactions.

How to Prepare for Your Economics Paper?

Economics, especially the Macroeconomics section, could bring you good marks if you study the chapters in the right method. Macroeconomics has more detailed and conceptual chapters. You are also likely to get quite a few numerical problems to solve in this section. Here are some helpful tips for you to follow while preparing these chapters.

Take one chapter at a time. In Macroeconomics, it is important to understand all the concepts thoroughly. So, you must not rush into the topics. Proceed to a new topic only when the previous one is clear to you.
Solve various types of questions and sums for a better understanding. This will ensure that you are well-prepared to answer any type of questions asked in the exams.
Revision is the key in Macroeconomics. Starting from definitions to formulas, you need to be thorough will all the things.

For your Macroeconomics revisions, you can also refer to Sandeep Garg Solutions. The class 12 macroeconomics Sandeep Garg solutions chapter 12 PDF can be downloaded for free from Vedantu. You can also find solutions to the chapters covered in other Class 12 subjects on Vedantu.

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The Sandeep Garg Macroeconomics Class 12 Solutions Class 12 Macroeconomics Sandeep Garg Solutions Chapter 12 - Balance of Payments is explained by none other than the expert Economic teachers who make sure you not only get the concepts understood but also get the up to date information needed to study for the exams. We here at Vedantu allow you to get a comprehensive sight of the chapter while also helping them complete their homework and study on time. Students can also access these notes even before they are taught this chapter 12: Balance of payments so that they keep their concepts cleared even before the Chapter is taught in class.

This compilation of Sandeep Garg Macroeconomics Class 12 Solutions Class 12 Macroeconomics Sandeep Garg Solutions Chapter 12 - Balance of Payments via Vedantu helps students study and score better marks in board exams which are deemed to be difficult.

FAQs on Sandeep Garg Macroeconomics: Class 12 Chapter 12 Solutions

1. What all are covered in Sandeep Garg Macroeconomics Class 12 Solutions Class 12 Macroeconomics Chapter 12 - Balance of Payments?

The topics that are covered in Sandeep Garg Macroeconomics Class 12 Solutions Class 12 Macroeconomics Chapter 12 - Balance of Payments include the following:

mentioning the name of the items that need to be included in the balance of trade account
definition of current account and capital account
giving an estimate regarding when the surplus in a Balance of trade account is seen
definition of trade deficit

All of these topics along with their solutions are clearly mentioned in the Class 12 solution by Sandeep Garg.

2. How do students get a benefit by studying through Sandeep Garg Macroeconomics Class 12 Solutions Class 12 Macroeconomics Chapter 12 - Balance of Payments via Vedantu?

There are multiple reasons as to why studying through Sandeep Garg Macroeconomics Class 12 Solutions Class 12 Macroeconomics Chapter 12 - Balance of Payments via Vedantu will help students during their study time and some of them include:

It is up to date with the CBSE syllabus trends
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Even if there is a lengthy answer to the Sandeep Garg solution for Class 12 make sure it has proper bullet points to help you understand the concept well.
It helps both with studies and last-minute revision.

3. Are there revision notes available for Class 12 Macroeconomics Chapter 12 - Balance of Payments via Vedantu?

Yes, Vedantu makes sure there are a variety of revision notes made available for Class 12 Macroeconomics Chapter 12 - Balance of Payments by providing up-to-date and easy-to-read revision notes. These notes come quite handy when you are up to prepare for your exam and you do not have extensive time to prepare your revision notes or you do not have time to go through the entire notes. You can also make sure you attend short Vedantu classes within which you will be revising the concepts and understanding those in detail within a few minutes.

4. What is the definition of Balance of Payment and trade deficit as given in Sandeep Garg Macroeconomics Class 12 Solutions Class 12 Macroeconomics Chapter 12 - Balance of Payments?

According to Sandeep Garg Macroeconomics Class 12 Solutions Class 12 Macroeconomics Chapter 12 - Balance of Payments, the definition of Balance of Payments is given as follows:

Balance of payment is an accounting statement that provides a systemic record of all the economic transactions that take place between the residents of the country and the rest of the world based on a given limited period.

Furthermore, the definition of trade deficit as provided by Sandeep Garg Macroeconomics Class 12 Solutions Class 12 Macroeconomics Chapter 12 - Balance of Payments is as follows:

Trade deficit defines the excess amount of goods or services done via the borders over the exports of the goods or services.

5. Does the Sandeep Garg Macroeconomics Class 12 Solutions Class 12 Macroeconomics help students prepare for competitive exams?

Sandeep Garg provides Class 12 Solutions for Macroeconomics which helps the students prepare not only for their exams but also for a variety of competitive exams. Economics being a subject of importance all over the world makes it convenient for people to learn through these solutions provided by Sandeep Garg which not only makes the concept clear but also gives a much crisp response in return for the question or doubts you have. This guide by Sandeep Garg is not only beneficial for students but also for teachers alike to guide their students for their competitive exam preparations.