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
Correct Answer: Trade in goods and services
Solution : The correct answer is (a) Trade in goods and services
This component records the exports and imports of goods and services, representing the trade balance between a country and the rest of the world.
Question : The financial account of the Balance of Payments includes transactions related to:
Option 2: Income from foreign investments
Option 3: International transfers of funds
Option 4: Purchase and sale of foreign currency
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
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 : The capital account of the Balance of Payments includes transactions related to:
Option 1: Imports and exports of goods
Option 4: International borrowing and lending
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