Correct Answer: All of the above

Solution : The correct answer is (d) All of the above.

The current account balance in the Balance of Payments is a measure of a country's net exports, net income from foreign investments, and net financial transfers. It represents the difference between a country's total exports of goods and services, income received from foreign investments, and unilateral transfers received from abroad, and its total imports of goods and services, income paid to foreign investors, and unilateral transfers sent abroad.

a) Net exports: The current account includes the balance of trade, which is the difference between a country's exports and imports of goods and services. If a country has a positive balance of trade (exports exceed imports), it contributes to a surplus in the current account. Conversely, if a country has a negative balance of trade (imports exceed exports), it contributes to a deficit in the current account.

b) Net income from foreign investments: The current account also includes income flows related to foreign investments. This includes income earned by residents from their investments abroad (such as dividends, interest, and profits) and income paid to foreign investors on their investments in the country.

c) Net financial transfers: The current account includes unilateral transfers, which are transfers of funds or assets between countries that do not involve an exchange of goods, services, or assets in return. Examples of unilateral transfers include remittances from overseas workers, foreign aid, and grants.

Therefore, the current account balance in the Balance of Payments reflects all three components: net exports, net income from foreign investments, and net financial transfers. Hence, the correct answer is d) All of the above.