Question : Which of the following is an example of a unilateral transfer in the current account?

Option 1: Exporting goods and services

Option 2: Receiving foreign aid

Option 3: Investing in foreign stocks

Option 4: Borrowing from a foreign bank


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Receiving foreign aid


Solution : The correct answer is (b) Receiving foreign aid

Receiving foreign aid is an example of a unilateral transfer in the current account. Unilateral transfers represent one-way transfers of funds or assets without expecting anything in return. They are typically classified as part of the current account of the Balance of Payments (BoP).

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