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Question : The financial account of the Balance of Payments includes transactions related to:

Option 1: Imports and exports of goods

Option 2: Income from foreign investments

Option 3: International transfers of funds

Option 4: Purchase and sale of foreign currency


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Income from foreign investments


Solution : The correct answer is (b) Income from foreign investments.

The financial account of the Balance of Payments includes transactions related to the movement of financial assets and liabilities between residents and non-residents.

Income from foreign investments: This refers to the income earned by residents from their investments in foreign assets, such as dividends, interest, and profits. It is recorded as a component of the financial account.

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