Economic Awareness - Sectors of Indian Economy
Which of the following statements about the Balance of Payments is correct?
Which of the following statements about the Balance of Payments is correct?
hard Q9 of 15
Step-by-Step Solution
Step 1: Understand BoP components
BoP consists of current account (trade in goods/services, income, transfers like remittances), capital account (capital transfers), and financial account (investments like FDI, portfolio).Step 2: Analyze statements
Current account includes remittances and export-import transactions. Capital account does not record trade in goods and services. A BoP surplus indicates net credits exceed debits overall. Financial account includes foreign direct investment.Final Answer:
Current account includes remittances and export-import transactions → Option AQuick Check:
Current account = trade plus remittances ✅
Quick Trick: Remember BoP accounts and their contents.
Common Mistakes:
MISTAKES- Mixing capital and current account roles.
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