Which of the following transactions are recorded in the financial account in India’s standard BPM6…
Official reserve transactions and private purchases of long-term foreign bonds are financial-account entries. The former are reserve-asset transactions and the latter are…
Choose your answer
Which of the following transactions are recorded in the financial account in India’s standard BPM6 balance-of-payments presentation as of November 2026?
(a) Merchandise exports
(b) Service exports
(c) Transactions in official reserve assets
(d) Private purchases of long-term foreign bonds
Answer and explanation
Correct answer B
Official reserve transactions and private purchases of long-term foreign bonds are financial-account entries. The former are reserve-asset transactions and the latter are portfolio investment. Merchandise exports and service exports are both credits in the current account.
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Telangana SET (TG SET)