Question : Which of the following is not an example of a current account transaction?
Option 1: Investing in foreign stocks
Option 2: Exporting goods and services
Option 3: Receiving income from foreign investments
Option 4: Paying for foreign aid
Correct Answer: Investing in foreign stocks
Solution : The correct answer is (a) Investing in foreign stocks
Investing in foreign stocks is not an example of a current account transaction. Current account transactions primarily involve the exchange of goods, services, income, and current transfers between residents and non-residents.
Option 1: Exporting goods and services
Option 2: Paying for foreign aid
Option 4: Borrowing from a foreign bank
Question : Which of the following is an example of a unilateral transfer in the current account?
Option 2: Receiving foreign aid
Option 3: Investing in foreign stocks
Question : Which of the following is an example of a capital account transaction?
Option 1: Importing goods and services from another country
Option 2: Exporting goods and services to another country
Option 3: Buying foreign stocks and bonds
Option 4: Receiving foreign aid
Question : Which of the following is a capital account transaction?
Option 2: Making a foreign direct investment
Option 3: Receiving income from a foreign investment
Question : Which of the following is a current account transaction?
Option 1: Buying foreign currency
Option 2: Selling domestic currency
Option 3: Exporting goods and services
Option 4: Investing in foreign stocks
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile