Which of the following are components of the Capital Account in the Balance of Payments (BOP)? (i)…
Foreign Direct Investment (FDI) and External Commercial Borrowings (ECB) are components of the Capital Account in the Balance of Payments, as they represent cross-border…
Choose your answer
Which of the following are components of the Capital Account in the Balance of Payments (BOP)?
(i) Foreign Direct Investment (FDI)
(ii) Export of Merchandise
(iii) External Commercial Borrowings (ECB)
(iv) Unilateral Transfers
Answer and explanation
Correct answer B
Foreign Direct Investment (FDI) and External Commercial Borrowings (ECB) are components of the Capital Account in the Balance of Payments, as they represent cross-border investment and external borrowing. Export of merchandise and unilateral transfers are recorded in the Current Account.
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Andhra Pradesh SET (APSET)