Question : Which of the following is not a type of capital account transaction?
Option 1: Foreign direct investment
Option 2: Portfolio investment
Option 3: international borrowing
Option 4: Import of goods and services
Correct Answer: Import of goods and services
Solution : The correct answer is (d) Import of goods and services
The import of goods and services is a current account transaction, not a capital account transaction. The capital account primarily deals with financial transactions involving the acquisition or disposal of non-produced, non-financial assets and liabilities.
Option 4: Import of goods
Question : Which of the following is not an example of a capital account transaction?
Option 3: International borrowing
Option 4: Exporting goods and services
Question : Which of the following is not a type of financial account transaction?
Option 4: Export of goods and services
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
Option 4: Borrowing from a foreign bank
Question : Which of the following is not a type of capital flow?
Option 4: Merchandise trade
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