Which one of the following is not included in the capital account in the balance of payments ?
In India's Balance of Payments accounting, investment income (interest, profits, and dividends on cross-border assets and liabilities) is recorded under the invisibles…
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Which one of the following is not included in the capital account in the balance of payments ?
Answer and explanation
Correct answer C
In India's Balance of Payments accounting, investment income (interest, profits, and dividends on cross-border assets and liabilities) is recorded under the invisibles (income) category of the current account rather than the capital account. Foreign investment, external assistance (loans), and NRI deposits are components of the capital account.
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