Current Account components of trade in services include :
(A) Gifts, Remittances
(B) Net Non-Factor Income
(C) Net Investment Income
(D) Grants
Choose the correct answer from the options given below :
Current Account components of trade in services include :
(A) Gifts, Remittances
(B) Net Non-Factor Income
(C) Net Investment Income
(D) Grants
Choose the correct answer from the options given below :
Solution
✅ Correct Option: 2
Trade in services (invisible trade) includes both factor income (Net Investment Income) and non-factor income (Net Non-Factor Income like banking, shipping). Gifts, Remittances, and Grants are transfer payments, which form a separate component of the current account, not trade in services. Hence B and C.
Related questions:
2025: 15 May Shift 1
2022: 19 July Shift 2
2022: 10 Aug Shift 2