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Question

Estimatie the Capital Account Balance from the following data.

ItemsUS million $External Assistance (net)606External Commercial Borrowing (net)3,429Short-term Debt69Banking Capital (net) (inclusive of NRI Deposits)−542Foreign Investment (net)38,385Other Flows (net)−3,407


A

35,000

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B

38,500

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C

38,540

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D

38,650

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Solution

The correct option is C

38,540


Capital Account Balance is the sum of these elements.

Capital Account Balance= Net external Assistance + Net External Commercial Borrowings + Short-term debt + Net Banking Capital + Net Foreign Investment + Net Other Flows


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