Q. The Current account of Balance of Payment (BOP) includes:

Select the correct answer using the codes given below:

1 and 2 only

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1 and 3 only

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1, 2 and 3

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1, 3 and 4

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Solution

The correct option is A 1 and 2 only
Explanation:

The current account is used to monitor the inflow and outflow of goods and services between countries. This account covers all the receipts and payments made with respect to raw materials and manufactured goods.

It also includes:

Receipts from engineering,

Receipts from tourism, transportation, business services, stocks, and royalties from patents and copyrights, and

Unilateral transfers.

Note: Loans & borrowings and foreign exchange reserves are included in the capital account of the Balance of Payment (BOP).

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Similar questions

Q. The Current account of Balance of Payment (BOP) includes:

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Q. Which of the following is/are the components of the current account of the balance of payment (BoP)?

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15. Match List I with List II and select the correct answer using the codes given below the Lists:

List I List II

Select the correct answer using the codes given below:

I. WHO A) Provides loans to address short term loans to address balance of payments

II. IDA B) Multi-lateral trade negotiation body

III. IMF C) Sanction of soft loans

IV. IBRD D) Facilitating lending and borrowing for reconstruction and development

Select the correct answer using the codes given below: i ii iii iv

Trade in goods includes services, capital transfers, and foreign investments.

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