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
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.
Question : Which of the following is a capital account transaction?
Question : Which of the following is an example of a capital account transaction?
Question : Which of the following transactions would result in a credit to the current account?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile