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Question : The financial account of the Balance of Payments records:

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


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 9th Jan, 2024

Correct Answer: International borrowing and lending


Solution : The correct answer is (d) International borrowing and lending.

The financial account of the Balance of Payments records international transactions related to borrowing and lending, including loans, bonds, stocks, and other financial instruments between residents and non-residents of a country. It captures capital flows in and out of the country, such as foreign direct investment, portfolio investment, and other capital transactions.

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