Question : Which of the following is a current account transaction?
Option 1: Buying foreign currency
Option 2: Selling domestic currency
Option 3: Exporting goods and services
Option 4: Investing in foreign stocks
Correct Answer: Exporting goods and services
Solution : The correct answer is (c) Exporting goods and services
Exporting goods and services is a current account transaction. The current account of the Balance of Payments (BoP) records transactions related to trade in goods and services, income flows, and unilateral transfers.
Question : Which of the following is not an example of a current account transaction?
Question : Which of the following is an example of a capital account transaction?
Question : Which of the following is an example of a unilateral transfer in the current account?
Question : Which of the following is not a capital account transaction?
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