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Consider the following items in the balance of payment in India I. NRI deposits II. Remittances Which…

NRI deposits are financial inflows in the broad historical capital account; remittances are current transfers. OnlyI fits. OnlyII,both andneither misclassify the flows;…

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Consider the following items in the balance of payment in India I. NRI deposits II. Remittances Which among the above is/are part of the capital account of balance of payments ?

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Correct answer A

NRI deposits are financial inflows in the broad historical capital account; remittances are current transfers. OnlyI fits. OnlyII,both andneither misclassify the flows; modern BPM terminology separates financial from capital account more narrowly.

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