Question : Which of the following is not a component of the current account?
Option 1: Merchandise trade balance
Option 2: Services trade balance
Option 3: Income balance
Option 4: Capital balance
Correct Answer: Capital balance
Solution : The correct answer is (d) Capital balance
The capital balance is part of the financial account, not the current account. It tracks the flows of financial assets and liabilities between a country and the rest of the world, including foreign direct investment, portfolio investment, and international borrowing.
Question : Which of the following is not a component of the balance of payments?
Question : Which of the following is not a component of the current account in the balance of payments?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile