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Which of the following falls under the term ‘Capital Account’?
1. Portfolio investment
2. External Assistance
3. Transfer payments
4. Commercial borrowings
Select the correct answer using the code given below:
  • a)
    1 and 3 only
  • b)
    2, 3 and 4 only
  • c)
    1, 2 and 4 only
  • d)
    1, 2, 3 and 4
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Which of the following falls under the term ‘Capital Account&rsq...
The balance of payments (BoP) records the transactions in goods, services and assets between residents of a country with the rest of the world for a specified time period typically a year. There are two main accounts in the BoP - the current account and the capital account. Capital Account Includes: External Assistance, Commercial Borrowings, Foreign Investment, Portfolio, FII, Non-Resident Deposits, Banking Capital. The current account records exports and imports in goods and services and transfer payments.
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Which of the following falls under the term ‘Capital Account’?1. Portfolio investment2. External Assistance3. Transfer payments4. Commercial borrowingsSelect the correct answer using the code given below:a)1 and 3 onlyb)2, 3 and 4 onlyc)1, 2 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer?
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