With reference to Balance of Payments, which of the following constitutes/ constitute the Current Account? 1. Balance of trade 2. Foreign assets 3. Balance of invisibles 4. Special Drawing Rights Select the correct answer using the code given below.

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Correct answer: 1 and 3. The balance of payment(BoP) is a record of all mon- etary transactions made between the residents of one country and the rest of the world. A balance of payments deficit means the nation imports more than it exports. The current account and capital account are the two components that constitute the bal- ance of payments. Option (c) is correct: The Current Account of a country’s Bal- ance of Payments (BoP) records the transactions of goods, ser- vices, income, and current transfers between residents and non-residents. It comprises the following components:  Balance of Trade (Goods): This is the difference between the value of a country’s exports and imports of tangible goods.  Balance of Invisibles:  Services: Transactions involving services such as tourism, banking, and consulting.  Income: Earnings from investments abroad (like interest and dividends) minus payments made to foreign investors. Foreign assets are part of the Financial Account, which records investments in financial instru-ments and assets between coun- tries. SDRs are international reserve

With reference to Balance of Payments, which of the following constitutes/ constitute the Current Account?1. Balance of trade2. Foreign assets3. Balance of invisibles4. Special Drawing RightsSelect the correct answer using the code given below.

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With reference to Balance of Payments, which of the following constitutes/ constitute the Current Account?1. Balance of trade2. Foreign assets3. Balance of invisibles4. Special Drawing RightsSelect the correct answer using the code given below.

Practice more Economy PYQs

More UPSC Economy PYQs