Capital Account of balance of payment includes :
(A) Export and Import of goods
(B) Receipt of loans from abroad
(C) Purchase of shares in foreign countries
(D) Current transfers from Abroad
(E) Repayment of International loans
Choose the correct answer from the options given below :
Capital Account of balance of payment includes :
(A) Export and Import of goods
(B) Receipt of loans from abroad
(C) Purchase of shares in foreign countries
(D) Current transfers from Abroad
(E) Repayment of International loans
Choose the correct answer from the options given below :
Solution
The Capital Account records transactions involving assets and liabilities. Receipt of loans from abroad (B), purchase of shares in foreign countries (C), and repayment of international loans (E) are all capital account transactions. Export and import of goods (A) falls under the current account (trade account). Current transfers (D) are also part of the current account. Hence (B), (C), (E) only.
Related questions:
2023: 11 June Shift 3
2023: 11 June Shift 3