6 Views

Question : Which of the following is not a capital account component in the balance of payments?

 

Option 1: Foreign direct investment

Option 2: Loans to foreign countries

Option 3: Purchases of foreign currency by domestic residents

Option 4: Export and import of goods and services


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: Export and import of goods and services


Solution : The correct answer is (d) Export and import of goods and services

The export and import of goods and services is not a capital account component in the balance of payments. It is a component of the current account, which tracks the flow of goods, services, income, and current transfers between a country and the rest of the world. The current account includes exports and imports of goods and services, income earned from investments abroad, and current transfers such as remittances and foreign aid.

The capital account in the balance of payments records transactions related to changes in ownership of financial assets and liabilities between a country and the rest of the world. It includes items such as foreign direct investment, loans to and from foreign countries, purchases and sales of real estate and other assets, and changes in financial derivatives.

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries
UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Extended Application Deadline: 10th Jan 2024
ISBR Business School PGDM Adm...
Apply
250+ Companies | Highest CTC 16 LPA | Average CTC 8 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business School...
Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 CR
ICFAI-LAW School BA-LLB / BBA...
Apply
Ranked 1 st among Top Law Schools of super Excellence in India - GHRDC | NAAC A+ Accredited | #36 by NIRF
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