Question
The profits of Indian–banks operating in foreign countries are a part of
Answer: Option B
Answer: (b)
Net Factor Income from Abroad (NFIA) refers to income generated by nationals abroad in the form of wages, salaries, rent, interest, dividend and profit.
It has the following three components:
Net compensation of employees;
Net income from property i.e., rent, interest and income from entrepreneurship (that is, profits and dividends); and
Net retained earnings of the resident companies working in foreign countries.
Profits earned by Indian banks functioning abroad come under ‘income from entrepreneurship.’
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Answer: (b)
Net Factor Income from Abroad (NFIA) refers to income generated by nationals abroad in the form of wages, salaries, rent, interest, dividend and profit.
It has the following three components:
Net compensation of employees;
Net income from property i.e., rent, interest and income from entrepreneurship (that is, profits and dividends); and
Net retained earnings of the resident companies working in foreign countries.
Profits earned by Indian banks functioning abroad come under ‘income from entrepreneurship.’
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