Question : Which of the following is not a type of current account transaction?
Option 1: Import of goods
Option 2: Import of services
Option 3: Export of goods
Option 4: Export of capital
Correct Answer: Export of capital
Solution : The correct answer is (d) Export of capital. The export of capital is not a type of current account transaction. The current account records transactions related to the exchange of goods, services, income, and unilateral transfers between a country and the rest of the world.Specifically, the current account includes: a) Import of goods: Payments made for the purchase of physical goods from abroad. b) Import of services: Payments made for services received from abroad, such as transportation, tourism, or consulting services. c) Export of goods: Receipts earned from the sale of physical goods to foreign countries. d) Export of capital: Export of capital refers to the outflow of financial resources, such as investments or loans, from a country to foreign countries. This type of transaction falls under the capital account rather than the current account.
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
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
Option 4: Import of goods
Question : Which of the following is an example of a capital account transaction in the Balance of Payments?
Option 2: Export of services
Option 3: Foreign investment in domestic real estate
Option 4: Repayment of foreign debt
Option 4: Income from foreign investments
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