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
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.
Question : Which of the following is not a current account transaction?
Option 2: Export of goods and services
Option 3: Transfer payments
Option 4: Income from foreign investments
Option 1: Import of goods and services
Option 4: Foreign direct investment
Question : Which of the following is not a component of the current account in the Balance of Payments?
Option 1: Exports of goods
Option 2: Imports of goods
Option 3: Remittances from overseas workers
Question : Which of the following is not a type of current account transaction?
Option 1: Import of goods
Option 2: Export of services
Question : Which of the following transactions will be recorded in the capital account of the Balance of Payments?
Option 3: Foreign investment in domestic companies
Option 4: Foreign aid received
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