Question : Which of the following is not a component of the capital account?
Option 1: Foreign direct investment
Option 2: Portfolio investment
Option 3: international transfers and gifts
Option 4: Current account balance
Correct Answer: Current account balance
Solution : The correct answer is (d) Current account balance
The current account balance is not a component of the capital account. The capital account and the current account are two separate components of the balance of payments (BoP) and represent different types of transactions.
Option 3: International borrowing
Option 4: International transfers and gifts
Option 3: Official reserve assets
Question : Which of the following is not included in the capital account of the BoP?
Option 3: international borrowing
Option 4: international transfers and gifts
Question : Which of the following is a component of the capital account?
Option 2: international transfers and gifts
Option 4: All of the above
Question : Which of the following is not a component of the financial account?
Option 4: Current account transactions
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