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Question : Which of the following components is a part of the Current Account in the Balance of Payments?

Option 1: Foreign Direct Investment

Option 2: Imports

Option 3: External debt

Option 4: Foreign exchange reserves


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Imports


Solution : The correct answer is (b) Imports.

The Current Account includes various components that represent the flows of goods, services, income, and transfers between a country and the rest of the world. Imports specifically represent the value of goods and services that a country purchases from foreign countries. It is a part of the Current Account's balance, along with other components such as exports, income from investments, and unilateral transfers.

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