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Question : Which of the following is not a capital account transaction?

Option 1: Purchasing foreign stocks and bonds

Option 2: Making a foreign direct investment

Option 3: Borrowing from a foreign bank

Option 4: Buying goods and services from a foreign country


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Buying goods and services from a foreign country


Solution : The correct answer is d) Buying goods and services from a foreign country

Buying goods and services from a foreign country is not a capital account transaction. It is a transaction that falls under the current account of the Balance of Payments (BoP). The current account records the inflows and outflows of goods, services, income, and transfers between residents and non-residents.

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