Giving reasons, state whether the following statements are true or false.
(i) Excess of foreign exchange receipts over foreign exchange payments on account of accommodating transactions equals deficit in the Balance of Payments.
(ii) Export and import of machines are recorded in capital account of Balance of Payments account.
(i) True, as accommodating transactions remove both stir plus and deficit of Balance of Payments account. As outflow causes ,deficit, which has to fulfilled with inflows.
(ii) False; as export and import of machines are recorded in current account of Balance of Payments account.