Question : Which of the following is not a component of the capital account in the balance of payments?
Option 1: Foreign direct investment
Option 2: Loans to foreign countries
Option 3: Purchases of foreign currency by domestic residents
Option 4: Export and import of goods and services
Correct Answer: Export and import of goods and services
Solution : The correct answer is (d) Export and import of goods and services
The capital account in the balance of payments records the flows of financial assets between a country and the rest of the world. It includes transactions related to investment, loans, and changes in ownership of financial assets. The export and import of goods and services, on the other hand, is part of the current account, which measures the flows of goods, services, and income between a country and the rest of the world.
Question : Which of the following is not a capital account component in the balance of payments?
Question : Which of the following transactions will be recorded in the capital account of the Balance of Payments?
Option 1: Import of goods
Option 2: Export of services
Option 3: Foreign investment in domestic companies
Option 4: Foreign aid received
Question : Which of the following is an example of a capital account transaction in the Balance of Payments?
Option 3: Foreign investment in domestic real estate
Option 4: Repayment of foreign debt
Question : Which of the following is an example of a capital outflow in the balance of payments?
Option 1: Export of goods and services
Option 2: Import of goods and services
Option 3: foreign investment in domestic assets
Option 4: Domestic investment in foreign assets
Question : Which of the following is not a current account transaction?
Option 1: Import of goods and services
Option 2: Export of goods and services
Option 3: Transfer payments
Option 4: Foreign direct investment
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