Question : Which of the following is an example of a capital account transaction?
Option 1: Importing goods and services from another country
Option 2: Exporting goods and services to another country
Option 3: Buying foreign stocks and bonds
Option 4: Receiving foreign aid
Correct Answer: Buying foreign stocks and bonds
Solution : The correct answer is c) Buying foreign stocks and bonds
Buying foreign stocks and bonds is an example of a capital account transaction. The capital account of the Balance of Payments (BoP) records transactions related to the acquisition and disposal of financial assets and liabilities between residents and non-residents. This includes activities such as purchasing foreign stocks, bonds, and other financial instruments.
Option 1: Importing goods from another country
Option 2: Exporting goods to another country
Option 3: Foreign direct investment (FDI)
Option 4: Receiving a foreign aid grant
Question : Which of the following is not an example of a current account transaction?
Option 1: Investing in foreign stocks
Option 2: Exporting goods and services
Option 3: Receiving income from foreign investments
Option 4: Paying for foreign aid
Question : Which of the following is not a capital account transaction?
Option 1: Purchasing foreign stocks and bonds
Option 2: Making a foreign direct investment
Option 3: Borrowing from a foreign bank
Option 4: Buying goods and services from a foreign country
Question : Which of the following is an example of a unilateral transfer in the current account?
Option 1: Exporting goods and services
Option 2: Receiving foreign aid
Option 3: Investing in foreign stocks
Option 4: Borrowing from a foreign bank
Question : Which of the following is a capital account transaction?
Option 1: Receiving foreign aid
Option 3: Exporting goods and services
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