Question : The capital account of the Balance of Payments includes transactions related to:
Option 1: Imports and exports of goods
Option 2: Income from foreign investments
Option 3: International transfers of funds
Option 4: International borrowing and lending
Correct Answer: International borrowing and lending
Solution : The correct answer is (d) International borrowing and lending. The capital account records transactions such as loans, bond issuances, and other forms of borrowing and lending between residents and non-residents. It reflects the changes in a country's external financial assets and liabilities resulting from these borrowing and lending activities. The capital account includes transactions related to international borrowing and lending activities.
Question : The capital account of the Balance of Payments records transactions related to:
Question : In the Balance of Payments, the capital account records transactions related to:
Question : The financial account of the Balance of Payments records:
Question : The financial account of the Balance of Payments includes transactions related to:
Option 4: Purchase and sale of foreign currency
Option 1: Trade in goods and services
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