Giving reasons, explain whether the following are included in National Income:
(i) Profits earned by a branch of foreign bank.
(ii) Interest paid by an individual on a loan taken to buy a car. ,
(iii) Expenditure on machines for installation in a factory.
(i) Profits earned by a branch of foreign bank will not be included while estimating National Income, as it is a factor income to abroad.
(ii) Interest paid by an individual on a loan taken to buy a car will not be included while estimating National Income, as loan is taken for consumption purpose.
(iii) Expenditure on machines for installation in a factory will be included while estimating National Income, as it is a final consumption expenditure by factory management.