Question : Which of the following is not a component of the current account?
Option 1: Merchandise trade balance
Option 2: Services trade balance
Option 3: Income balance
Option 4: Capital balance
Correct Answer: Capital balance
Solution : The correct answer is (d) Capital balance. The capital balance, also known as the financial account, is a separate component of the balance of payments. It records the flows of financial assets and liabilities between a country and the rest of the world, including foreign direct investment, portfolio investment, and changes in reserve assets.
Question : Which of the following is not a component of the balance of payments?
Option 1: Current account
Option 2: Capital account
Option 3: financial account
Option 4: Trade account
Option 1: Balance of trade in goods and services
Option 2: Net income from abroad
Option 3: Net transfer payments
Option 4: Net capital inflows
Question : Which of the following is not a component of the current account in the balance of payments?
Option 1: Goods and services
Option 2: Income from abroad
Option 3: Capital flows
Option 4: Financial account
Option 4: financial account
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