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Question : Which account in the Balance of Payments represents the net change in a country's foreign assets and liabilities?

Option 1: Current Account

Option 2: Capital Account

Option 3: Financial Account

Option 4: Reserve Account


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Financial Account


Solution : The correct answer is (c) Financial Account.

The Financial Account records financial transactions involving assets and liabilities between residents and non-residents. It captures changes in ownership of financial assets and liabilities, including direct investment, portfolio investment, financial derivatives, and other investment.

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