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Question : Which of the following is not a component of the financial account?

Option 1: Foreign direct investment

Option 2: Portfolio investment

Option 3: Official reserve assets

Option 4: Current account balance


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Current account balance


Solution : The correct answer is (d) Current account balance

The current account balance is not a component of the financial account. The financial account measures the inflows and outflows of financial assets and liabilities, whereas the current account records the flows of goods, services, income, and current transfers between a country and the rest of the world.

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