Question

Which of the following are the components of foreign capital?
$1$. Grants and loans.
$2$. External commercial borrowings.
$3$. Foreign direct investment.
$4$. Deposits from non-residents.
Select the correct answer using the code given.

• A. $1,2,3$ and $4$
• B. $1,2$ and $4$
• C. $1$ and $2$
• D. $3$ and $4$

Answer 1

Answer: (A)

$1,2,3$ and $4$

Foreign capital, in general terms, refers to the capital receipts from foreign sources, its components are:
(i) Private foreign investment
(ii) Indirect investment
(iii) External commercial borrowings
(iv) Non-resident deposit
(v) Public foreign investment
(vi) United loans
(vii) Inter-government grants.