9 Views

Question : Which of the following is a capital account transaction?

Option 1: Receiving foreign aid

Option 2: Making a foreign direct investment

Option 3: Exporting goods and services

Option 4: Borrowing from a foreign bank


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Making a foreign direct investment


Solution : The correct answer is (b) Making a foreign direct investment

Making a foreign direct investment (FDI) is a capital account transaction. The capital account of the Balance of Payments (BoP) captures transactions related to the acquisition or disposal of non-financial assets, such as land, buildings, machinery, and equity interests in enterprises, between residents and non-residents.

Related Questions

MAHE Manipal M.Tech 2025
Apply
NAAC A++ Accredited | Accorded institution of Eminence by Govt. of India | NIRF Rank #4
Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
UPES | BBA Admissions 2025
Apply
#41 in NIRF, NAAC ‘A’ Grade | 100% Placement, up to 30% meritorious scholarships | Last Date to Apply: 28th Feb
VIT Chennai BTECH - Fashion T...
Apply
VIT Chennai B.Tech (Fashion Technology) Admissions 2025
Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 CR
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books