Question : Which of the following is not included in the current account of the BoP?
Option 1: Imports and exports of goods and services
Option 2: Income from foreign investments
Option 3: international transfers and gifts
Option 4: Foreign direct investment
Correct Answer: Foreign direct investment
Solution : The correct answer is d) Foreign direct investment
Foreign direct investment (FDI) is not included in the current account of the Balance of Payments (BoP). The current account includes transactions related to imports and exports of goods and services
Question : Which of the following is not included in the capital account of the BoP?
Option 1: Foreign direct investment
Option 2: Portfolio investment
Option 3: international borrowing
Option 4: international transfers and gifts
Question : Which of the following is not a component of the capital account?
Option 4: Current account balance
Question : The financial account of the Balance of Payments records:
Option 1: Imports and exports of goods
Option 3: International transfers of funds
Option 4: International borrowing and lending
Question : Which of the following is not a current account transaction?
Option 2: Export of goods and services
Option 3: Transfer payments
Option 4: Income from foreign investments
Question : The capital account of the Balance of Payments includes transactions related to:
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