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An Indian art gallery… (Class 12 Economics SQP 2026-27, Q8)

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EconomicsCBSE Class 12 · Sample paper, session 2026-27 · 1 mark · MCQ

CBSE Class 12 Economics sample paper 2026-27: question 8

From the official CBSE sample question paper for 2026-27, section A, question 8, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q8 · 1 mark · MCQCompetency-basedOpen Economy Macroeconomics

An Indian art gallery sells an antique Madhubani painting to a buyer in France for 4,000 euros. This transaction will be recorded on ______ side and ______ account of the Balance of Payments Account. (Choose the correct option to fill up the blank)

  1. (A)debit, current
  2. (B)credit, current
  3. (C)debit, capital
  4. (D)credit, capital

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

Open one hint at a time and try again before the next.

Hint 1

Does the transaction bring foreign exchange in or send it out?

Hint 2

Is trade in goods a current or capital account item?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Selling a painting to a buyer in France is an export of goods, which brings foreign currency into India, so it is a credit entry.

  2. Trade in goods is recorded in the current account of the BoP. Option (B).

    1 mark

Answer: (B) credit, current

Where the marks are

  • Export of goods: credit side, current account (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Open Economy Macroeconomics, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.