Question : Which of the following is not a type of current account transaction?
Option 1: Import of goods
Option 2: Import of services
Option 3: Export of goods
Option 4: Export of capital
Correct Answer: Export of capital
Solution :
The correct answer is (d) Export of capital.
The export of capital is not a type of current account transaction. The current account records transactions related to the exchange of goods, services, income, and unilateral transfers between a country and the rest of the world.Specifically, the current account includes:
a) Import of goods: Payments made for the purchase of physical goods from abroad.
b) Import of services: Payments made for services received from abroad, such as transportation, tourism, or consulting services.
c) Export of goods: Receipts earned from the sale of physical goods to foreign countries.
d) Export of capital: Export of capital refers to the outflow of financial resources, such as investments or loans, from a country to foreign countries. This type of transaction falls under the capital account rather than the current account.
