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
Correct Answer: Receiving foreign aid
Solution : The correct answer is (b) Receiving foreign aid
Receiving foreign aid is an example of a unilateral transfer in the current account. Unilateral transfers represent one-way transfers of funds or assets without expecting anything in return. They are typically classified as part of the current account of the Balance of Payments (BoP).
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
Option 2: Paying for foreign aid
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
Question : Which of the following is a capital account transaction?
Option 1: Receiving foreign aid
Option 2: Making a foreign direct investment
Option 3: Exporting goods and services
Question : Which of the following is a current account transaction?
Option 1: Buying foreign currency
Option 2: Selling domestic currency
Option 4: Investing in foreign stocks
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