The Balance of Payments (BoP) is a statement of all transactions made between entities in one country and the rest of the world over a specific period. It is divided into two main accounts: the Current Account and the Capital Account. The Current Account records transactions in goods, services, income (like remittances, interest, dividends), and current transfers (like gifts, grants).
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.
Asked in UPSC IAS 2014 · Topic: Current Account and Capital Account (Current Account: Definition and Components)
More External Sector of Economy questions
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