Question

Which one of the following is not an invisible item of the current account of India's balance of payments ?

• A. Royalty payments
• B. Capital inflows
• C. Software service exports
• D. Private transfers

Answer 1

Answer: (B)

Capital inflows

Royalty payments and software services exports payment are payment for service , therefore , they are included in invisible current account, private transfer also included in the invisible current account.Balance of payment Account consists of two Accounts one is Capital Account and another is Current Account. Current Account is also divided into two Accounts one is visible and another is invisible.Invisible Account contains transaction of service items and visible contain goods or commodity -items.