Question : The current account includes the balance of trade in goods, balance of trade in services, and balance of _______________transactions.
Option 1: capital
Option 2: financial
Option 3: investment
Option 4: current
Correct Answer: capital
Solution : The correct answer is (a) capital
The current account includes the balance of trade in goods, the balance of trade in services, and the balance of capital transactions. The balance of capital transactions represents the flow of financial capital between a country and the rest of the world, including items such as foreign direct investment, portfolio investment, and changes in reserve assets. It reflects the financial flows associated with the purchase or sale of assets, and it is an important component of the overall balance of payments.
Question : The current account of the Balance of Payments includes:
Option 1: Trade in goods and services
Option 2: Financial transfers
Option 3: Capital transactions
Option 4: Foreign exchange reserves
Question : The current account includes the balance of trade in goods, balance of trade in _______________and ____________transactions.
Option 1: services, capital
Option 2: transfers, income
Option 3: imports, exports
Option 4: investments, remittances
Question : Which account in the Balance of Payments includes transactions related to foreign direct investment?
Option 1: Current Account
Option 2: Capital Account
Option 3: Financial Account
Option 4: Reserve Account
Question : Which account in the Balance of Payments records the flow of goods, services, and income between residents and non-residents?
Question : Balance of payments consists of two main accounts: the current account and the ___________account.
Option 1: trade
Option 2: capital
Option 3: services
Option 4: investment
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