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

Option 1: Import of goods

Option 2: Export of services

Option 3: Transfer payments

Option 4: Foreign direct investment


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: Foreign direct investment


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

Foreign direct investment (FDI) is not a type of current account transaction. FDI falls under the capital account of the balance of payments, as it represents an investment in an enterprise located in a foreign country. Foreign direct investment involves a long-term interest in the management and control of a business, typically through ownership of equity or the establishment of a subsidiary.

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