1 View

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

Option 1: Foreign direct investment

Option 2: Export of goods and services

Option 3: Transfer payments

Option 4: Income from foreign investments


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Foreign direct investment


Solution : The correct answer is (a) Foreign direct investment

Foreign direct investment (FDI) is not a current account transaction. FDI is a capital account transaction, as it involves the acquisition or establishment of long-term assets, such as businesses or property, in a foreign country. It represents an investment in the real sector of the economy and is recorded in the capital account of the balance of payments.

Related Questions

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
SLAT 2025 - The Symbiosis Law...
Apply
Conducted by Symbiosis International (Deemed University) | Ranked #5 in Law by NIRF | Ranked #2 among best Pvt Universities by QS World Rankings
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships
Symbiosis Law School Pune Adm...
Apply
NAAC A++ Accredited | Ranked #5 by NIRF
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 7.5 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business Scho...
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