Statement I : Current account or income account of BOP (Balance of Payment) includes the flow of all…
Both statements are correct. The current account records international transactions in goods and services along with income and transfers. Visible transactions refer to…
Choose your answer
Statement I : Current account or income account of BOP (Balance of Payment) includes the flow of all goods and services.
Statement II : The current account is usually subdivided into visible and invisibles.
In the context of the two statements, which one of the following is correct ?
Answer and explanation
Correct answer B
Both statements are correct. The current account records international transactions in goods and services along with income and transfers. Visible transactions refer to goods, while the traditional invisible category includes services, income and transfers.
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Himachal Pradesh SET (HP SET)