Question : Which of the following is a current account item in the Balance of Payments?
Option 1: Foreign direct investment
Option 2: Repatriation of profits by foreign companies
Option 3: Government borrowing from foreign sources
Option 4: Export of goods
Answer (1)
17th Jan, 2024
Correct Answer: Export of goods
Solution : The correct answer is (d) Export of goods.
Export of goods is an example of a transaction that contributes to the current account. It represents the sale of goods produced domestically to foreign countries, and it is recorded as a credit entry in the current account.
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