Question : Which of the following is not a type of capital flow?
Option 1: Inward capital flow
Option 2: Outward capital flow
Option 3: Capital inflow
Option 4: Current account balance
Answer (1)
13th Jan, 2024
Correct Answer: Current account balance
Solution : The correct answer is (d) Current account balance
The current account balance is not a type of capital flow. The current account represents the balance of trade in goods and services, income flows, and unilateral transfers. It reflects the net flow of real economic transactions between a country and the rest of the world. It is a component of the balance of payments but not specifically related to capital flows.
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