Economic Awareness - Sectors of Indian Economy
Which of the following is included in the financial account of the Balance of Payments?
Which of the following is included in the financial account of the Balance of Payments?
medium Q6 of 15
Step-by-Step Solution
Step 1: Understand financial account
The financial account records transactions involving financial assets and liabilities, such as portfolio and direct investments.Step 2: Analyze options
Portfolio investment by foreign investors is a financial account transaction. Exports and remittances belong to the current account. Government subsidies are domestic fiscal measures.Final Answer:
Portfolio investment by foreign investors → Option BQuick Check:
Financial account = foreign portfolio and direct investments ✅
Quick Trick: Financial account = investment flows.
Common Mistakes:
MISTAKES- Confusing remittances with financial account.
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