Which of the following are components of the capital account of the balance of payments? A. External…

External commercial borrowings, government aid in the form of external assistance (loans), and equity capital (foreign direct and portfolio investment) are capital account flows, because they create or settle foreign assets and liabilities. Gifts, remittances and grants are unilateral transfers that create no claim to be repaid, so they are recorded under the current account; any combination containing them is wrong.