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The profits of Indian–banks operating in foreign countries are a part of
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- income from entrepreneurship earned from abroad
- domestic factor income of India
- profits of the enterprises working in domestic territory of India
- operating surplus of the banks located in India
- income from entrepreneurship earned from abroad
Correct Option: A
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: (a) Net compensation of employees; (b) Net income from property i.e., rent, interest and income from entrepreneurship (that is, profits and dividends); and (c) Net retained earnings of the resident companies working in foreign countries. Profits earned by Indian banks functioning abroad come under ‘income from entrepreneurship.’
