Which is not the component of capital account of balance of payment ?
Foreign investment income (such as dividends, interest, and profits received from or paid to non-residents) is a return on investment recorded in the Current Account under…
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Which is not the component of capital account of balance of payment ?
Answer and explanation
Correct answer D
Foreign investment income (such as dividends, interest, and profits received from or paid to non-residents) is a return on investment recorded in the Current Account under primary (factor) income, rather than in the Capital Account. Short-term and long-term capital investments and Special Drawing Rights (SDR) reserve movements are capital/reserve account items.
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RPSC School Lecturer (Sanskrit Education)