Which of the following is not included in the Capital Account of the Balance of Payments of a country ?
[amp_mcq option1=”Foreign Direct Investment” option2=”Commercial Borrowing” option3=”Invisibles” option4=”External Assistance” correct=”option3″]
This question was previously asked in
UPSC CDS-2 – 2024
– The **Current Account** records trade in goods (visibles), services (invisibles), income (investment income, compensation of employees), and current transfers (remittances, grants). “Invisibles” refers to services, income, and current transfers.
– The **Capital Account** (or Capital and Financial Account combined) records capital transfers and transactions involving financial assets and liabilities. This includes Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), loans (commercial borrowing, external assistance), and banking capital.