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Question : Balance of payments consists of two main accounts: the current account and the ___________account.

Option 1: trade

Option 2: capital

Option 3: services

Option 4: investment


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: capital


Solution : The correct answer is (b) capital

The balance of payments consists of two main accounts: the current account and the capital account. The current account records transactions related to the trade in goods and services, income flows, and current transfers between a country and the rest of the world. The capital account, on the other hand, records capital transactions, including financial investments, such as foreign direct investment and portfolio investment, as well as capital transfers. These two accounts together provide a comprehensive overview of a country's economic transactions with the rest of the world.

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