{"id":33897,"date":"2024-04-15T09:23:14","date_gmt":"2024-04-15T09:23:14","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=33897"},"modified":"2024-04-15T09:23:14","modified_gmt":"2024-04-15T09:23:14","slug":"the-current-account-of-the-balance-of-payments-includes-all-of-the-following-items-except-which-one","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-current-account-of-the-balance-of-payments-includes-all-of-the-following-items-except-which-one\/","title":{"rendered":"The current account of the balance of payments includes all of the following items except which one?"},"content":{"rendered":"

[amp_mcq option1=”The inflow of capital investment by multinational companies” option2=”Exports of manufactured goods” option3=”Interest payments on overseas debts” option4=”Expenditure in a country by overseas visitors” correct=”option1″]<\/p>\n

The correct answer is A. The inflow of capital investment by multinational companies.<\/p>\n

The current account of the balance of payments records a country’s international transactions in goods, services, income, and current transfers. It is divided into two main components: the trade balance and the non-trade balance. The trade balance is the difference between a country’s exports and imports of goods and services. The non-trade balance includes income from investments, such as interest and dividends, and current transfers, such as remittances from migrant workers.<\/p>\n

The inflow of capital investment by multinational companies is not included in the current account because it is a capital account transaction. The capital account records a country’s international transactions in financial assets, such as stocks, bonds, and loans.<\/p>\n

Here is a brief explanation of each option:<\/p>\n