Question : Which of the following is not a type of capital account transaction?
Option 1: Foreign direct investment
Option 2: Portfolio investment
Option 3: international borrowing
Option 4: Import of goods and services
Answer (1)
10th Jan, 2024
Correct Answer: Import of goods and services
Solution : The correct answer is (d) Import of goods and services
The import of goods and services is a current account transaction, not a capital account transaction. The capital account primarily deals with financial transactions involving the acquisition or disposal of non-produced, non-financial assets and liabilities.
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