Question : Which of the following is an example of a non-factor service in the current account?
Option 1: international transportation services
Option 2: financial services
Option 3: Tourism and travel
Option 4: Royalties and licensing fees
Correct Answer: financial services
Solution : The correct answer is b) Financial services
Financial services are an example of a non-factor service in the current account. Non-factor services refer to services that do not involve the direct use of factors of production, such as labor or capital. They are typically categorized as part of the services component in the current account of the Balance of Payments (BoP).
Question : Which of the following is an example of a factor income in the current account?
Option 1: International transportation services
Option 2: Investment income
Option 3: Royalties and licensing fees
Option 4: Tourism and travel
Question : Which account in the Balance of Payments records the flow of goods, services, and income between residents and non-residents?
Option 1: Current Account
Option 2: Capital Account
Option 3: Financial Account
Option 4: Reserve Account
Question : Which account in the Balance of Payments records international borrowing and lending?
Question : Which of the following is not an example of a capital account transaction?
Option 1: Foreign direct investment
Option 2: Portfolio investment
Option 3: International borrowing
Option 4: Exporting goods and services
Question : Which of the following is not a component of the financial account?
Option 3: international borrowing
Option 4: Current account transactions
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile