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

Option 1: Exporting goods and services

Option 2: Paying for foreign aid

Option 3: Receiving income from foreign investments

Option 4: Borrowing from a foreign bank


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 7th Jan, 2024

Correct Answer: Borrowing from a foreign bank


Solution : The correct answer is d) Borrowing from a foreign bank

Borrowing from a foreign bank is not an example of a current account transaction. It is a financial transaction that falls under the capital account of the Balance of Payments (BoP). The capital account tracks the inflows and outflows of financial assets and liabilities between residents and non-residents.

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