{"id":91100,"date":"2025-06-01T10:46:07","date_gmt":"2025-06-01T10:46:07","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91100"},"modified":"2025-06-01T10:46:07","modified_gmt":"2025-06-01T10:46:07","slug":"which-of-the-following-constitute-capital-account-1-foreign-loans","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-constitute-capital-account-1-foreign-loans\/","title":{"rendered":"Which of the following constitute Capital Account?\n \n 1. Foreign Loans"},"content":{"rendered":"<p>Which of the following constitute Capital Account?<\/p>\n<ul>\n<li>1. Foreign Loans<\/li>\n<li>2. Foreign Direct Investment<\/li>\n<li>3. Private Remittances<\/li>\n<li>4. Portfolio Investment<\/li>\n<\/ul>\n<p>Select the correct answer using the codes given below.<\/p>\n<p>[amp_mcq option1=&#8221;1, 2 and 3&#8243; option2=&#8221;1, 2 and 4&#8243; option3=&#8221;2, 3 and 4&#8243; option4=&#8221;1, 3 and 4&#8243; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2013<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2013.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2013\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe Capital Account of the Balance of Payments records transactions involving changes in ownership of foreign financial and non-financial assets. Foreign Loans (both inflow and outflow), Foreign Direct Investment (FDI), and Portfolio Investment (like buying stocks or bonds) are all classified under the Capital Account as they represent changes in assets or liabilities. Private Remittances, which are unilateral transfers of money, are part of the Current Account.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nThe Balance of Payments (BoP) summarizes all economic transactions between residents of a country and the rest of the world over a period. It consists of the Current Account and the Capital Account. The Capital Account deals with cross-border investment flows and changes in assets\/liabilities.<br \/>\n<\/section>\n<section id=\"pyq-additional_information\">\nThe Current Account records transactions related to trade in goods and services, income receipts and payments, and current transfers (like remittances, grants). The Capital Account, broadly defined, includes capital transfers (like debt forgiveness, grants) and investment flows (FDI, portfolio investment, other investments like loans and deposits). In India&#8217;s BoP presentation, the Capital Account is mainly composed of Investment (FDI, Portfolio, Other) and Loans, and Banking Capital.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Which of the following constitute Capital Account? 1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment Select the correct answer using the codes given below. [amp_mcq option1=&#8221;1, 2 and 3&#8243; option2=&#8221;1, 2 and 4&#8243; option3=&#8221;2, 3 and 4&#8243; option4=&#8221;1, 3 and 4&#8243; correct=&#8221;option2&#8243;] This question was previously asked in UPSC IAS &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Which of the following constitute Capital Account?\n \n 1. Foreign Loans\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-constitute-capital-account-1-foreign-loans\/#more-91100\">Detailed Solution<span class=\"screen-reader-text\">Which of the following constitute Capital Account?<\/p>\n<p> 1. Foreign Loans<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1467,1226],"class_list":["post-91100","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1467","tag-external-sector-of-economy","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following constitute Capital Account?  1. Foreign Loans<\/title>\n<meta name=\"description\" content=\"The Capital Account of the Balance of Payments records transactions involving changes in ownership of foreign financial and non-financial assets. Foreign Loans (both inflow and outflow), Foreign Direct Investment (FDI), and Portfolio Investment (like buying stocks or bonds) are all classified under the Capital Account as they represent changes in assets or liabilities. Private Remittances, which are unilateral transfers of money, are part of the Current Account. The Balance of Payments (BoP) summarizes all economic transactions between residents of a country and the rest of the world over a period. It consists of the Current Account and the Capital Account. The Capital Account deals with cross-border investment flows and changes in assets\/liabilities.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-constitute-capital-account-1-foreign-loans\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following constitute Capital Account?  1. Foreign Loans\" \/>\n<meta property=\"og:description\" content=\"The Capital Account of the Balance of Payments records transactions involving changes in ownership of foreign financial and non-financial assets. Foreign Loans (both inflow and outflow), Foreign Direct Investment (FDI), and Portfolio Investment (like buying stocks or bonds) are all classified under the Capital Account as they represent changes in assets or liabilities. Private Remittances, which are unilateral transfers of money, are part of the Current Account. The Balance of Payments (BoP) summarizes all economic transactions between residents of a country and the rest of the world over a period. It consists of the Current Account and the Capital Account. The Capital Account deals with cross-border investment flows and changes in assets\/liabilities.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-constitute-capital-account-1-foreign-loans\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:46:07+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which of the following constitute Capital Account?  1. Foreign Loans","description":"The Capital Account of the Balance of Payments records transactions involving changes in ownership of foreign financial and non-financial assets. Foreign Loans (both inflow and outflow), Foreign Direct Investment (FDI), and Portfolio Investment (like buying stocks or bonds) are all classified under the Capital Account as they represent changes in assets or liabilities. Private Remittances, which are unilateral transfers of money, are part of the Current Account. The Balance of Payments (BoP) summarizes all economic transactions between residents of a country and the rest of the world over a period. It consists of the Current Account and the Capital Account. The Capital Account deals with cross-border investment flows and changes in assets\/liabilities.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-constitute-capital-account-1-foreign-loans\/","og_locale":"en_US","og_type":"article","og_title":"Which of the following constitute Capital Account?  1. Foreign Loans","og_description":"The Capital Account of the Balance of Payments records transactions involving changes in ownership of foreign financial and non-financial assets. Foreign Loans (both inflow and outflow), Foreign Direct Investment (FDI), and Portfolio Investment (like buying stocks or bonds) are all classified under the Capital Account as they represent changes in assets or liabilities. Private Remittances, which are unilateral transfers of money, are part of the Current Account. The Balance of Payments (BoP) summarizes all economic transactions between residents of a country and the rest of the world over a period. It consists of the Current Account and the Capital Account. The Capital Account deals with cross-border investment flows and changes in assets\/liabilities.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-constitute-capital-account-1-foreign-loans\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:46:07+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-constitute-capital-account-1-foreign-loans\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-constitute-capital-account-1-foreign-loans\/","name":"Which of the following constitute Capital Account? 1. 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The Capital Account deals with cross-border investment flows and changes in assets\/liabilities.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-constitute-capital-account-1-foreign-loans\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-constitute-capital-account-1-foreign-loans\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-constitute-capital-account-1-foreign-loans\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"Which of the following constitute Capital Account? 1. 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