Economic Awareness - Sectors of Indian Economy
Which of the following transactions is recorded in the capital account of the Balance of Payments?
Which of the following transactions is recorded in the capital account of the Balance of Payments?
easy Q12 of 15
Step-by-Step Solution
Step 1: Understand Balance of Payments components
The Balance of Payments has two main accounts: current account (trade, services, remittances) and capital account (investment flows).Step 2: Analyze options
Foreign direct investment inflow is a capital account transaction. Remittances, exports, and imports are current account transactions.Final Answer:
Foreign direct investment inflow into India → Option AQuick Check:
Foreign direct investment inflow into India = correct ✅
Quick Trick: Capital account = foreign investments and loans.
Common Mistakes:
MISTAKES- Mixing remittances with capital account instead of current account.
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