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Question : Which of the following is not a type of current account transaction?

Option 1: Import of goods

Option 2: Import of services

Option 3: Export of goods

Option 4: Export of capital


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Export of capital


Solution : The correct answer is (d) Export of capital.

The export of capital is not a type of current account transaction. The current account records transactions related to the exchange of goods, services, income, and unilateral transfers between a country and the rest of the world.Specifically, the current account includes:

a) Import of goods: Payments made for the purchase of physical goods from abroad.

b) Import of services: Payments made for services received from abroad, such as transportation, tourism, or consulting services.

c) Export of goods: Receipts earned from the sale of physical goods to foreign countries.

d) Export of capital: Export of capital refers to the outflow of financial resources, such as investments or loans, from a country to foreign countries. This type of transaction falls under the capital account rather than the current account.

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