Correct Answer: Capital flows

Solution : The correct answer is (d) Capital flows

Capital flows are not a component of the current account in the balance of payments. The current account includes exports and imports of goods and services, income from abroad (such as earnings from foreign investments or remittances), and unilateral transfers (such as foreign aid or gifts). Capital flows, on the other hand, are recorded in the capital account of the balance of payments and represent financial transactions involving the acquisition or disposal of assets between residents and non-residents.