With reference to Balance of Payments, which of the following constitutes/constitute the Current Account ?
1. Balance of trade
2. Foreign assets
3. Balance of invisibles
4. Special Drawing Rights
Select the correct answer using the code given below
-
A.
1 only
-
B.
2 and 3
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C.
1 and 3
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D.
1, 2 and 4
Correct Answer:
C. 1 and 3
Explanation:
The current account encompasses the trade balance, which is the difference between exports and imports, along with net remittance flows and service-based trade.
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