Question : Which of the following is an example of a capital flow in the balance of payments?
Option 1: Export of goods and services
Option 2: Import of goods and services
Option 3: Foreign aid received
Option 4: Remittances from abroad
Correct Answer: Foreign aid received
Solution : The correct answer is c) Foreign aid received
Foreign aid received is an example of a capital flow in the balance of payments. The balance of payments is a record of all economic transactions between residents of one country and residents of other countries over a specific period. It is divided into two main components: the current account and the capital account.
The current account records the flow of goods, services, income, and transfers between countries.
Question : Which of the following is an example of a capital outflow in the balance of payments?
Question : Which of the following transactions will be recorded in the capital account of the Balance of Payments?
Question : Which of the following is an example of a unilateral transfer in the Balance of Payments?
Question : Which of the following is an example of a capital account item in the Balance of Payments?
Question : Which of the following is an example of a capital account transaction in the Balance of Payments?
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