With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
- Balance of trade
- Foreign assets
- Balance of invisibles
- Special Drawing Right
Select the correct answer using the code given below.
Detailed Explanation:
Current Account of the Balance of Payments (BoP) comprises two main components: Balance of Trade (visible items - exports and imports of goods) and Balance of Invisibles (invisible items - services, income, and current transfers).
Foreign Assets are part of the Capital Account/Financial Account, representing investment flows and changes in ownership of international assets. Special Drawing Rights (SDR) are IMF reserve assets recorded under Reserve Assets in the BoP, not in the Current Account.
Question 8 of 12 Balance of Payments
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