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Question : The current account includes the balance of trade in goods, balance of trade in _______________and ____________transactions.

Option 1: services, capital

Option 2: transfers, income

Option 3: imports, exports

Option 4: investments, remittances


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: services, capital


Solution : The correct answer is (a) services, capital

The current account includes the balance of trade in goods, the balance of trade in services, and transactions related to income and transfers. Specifically, the balance of trade in goods represents the difference between a country's exports and imports of tangible goods. The balance of trade in services reflects the difference between a country's exports and imports of intangible services, such as tourism, transportation, and financial services. Transactions related to income include earnings from investments and remittances, while transfers include unilateral transfers of funds, such as foreign aid or personal remittances.

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