Economic Awareness - Sectors of Indian Economy
Which of the following is included in the Current Account of the Balance of Payments?
Which of the following is included in the Current Account of the Balance of Payments?
easy Q1 of 15
Step-by-Step Solution
Step 1: Understand the Current Account components
The Current Account records trade in goods and services, income receipts and payments, and current transfers.Step 2: Classify each option
Interest payments on foreign loans are income payments and thus part of the Current Account. Foreign direct investment inflow and purchase of shares are Financial Account transactions. Capital transfers by government belong to the Capital Account.Final Answer:
Interest payments on foreign loans → Option AQuick Check:
Current Account = trade, income, current transfers ✅
Quick Trick: Income payments like interest belong to Current Account.
Common Mistakes:
MISTAKES- Confusing investment inflows with income payments.
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