Question : Which of the following is not a type of international trade?
Option 1: Merchandise trade
Option 2: Services trade
Option 3: Investment trade
Option 4: Capital trade
Correct Answer: Capital trade
Solution : The correct answer is (d) Capital trade. "Capital trade" is not a recognized term in the context of international trade.
The three main types of international trade are: a) Merchandise trade: This refers to the exchange of tangible goods between countries. It includes the import and export of products such as machinery, vehicles, electronics, clothing, and agricultural goods. b) Services trade: This involves the exchange of intangible services between countries. It includes activities such as tourism, transportation, financial services, consulting, and telecommunications. c) Investment trade: This term is not commonly used in the context of international trade. However, it can refer to the flow of financial capital across borders, including investments in stocks, bonds, and other financial assets.
Question : Which of the following is not a type of capital flow?
Option 1: Foreign direct investment
Option 2: Portfolio investment
Option 3: international borrowing
Option 4: Merchandise trade
Question : Which of the following is not a component of the financial account?
Option 4: Merchandise trade balance
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
Question : Which of the following is not a type of capital account transaction?
Option 4: Import of goods and services
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