{"id":91169,"date":"2025-06-01T10:48:21","date_gmt":"2025-06-01T10:48:21","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91169"},"modified":"2025-06-01T10:48:21","modified_gmt":"2025-06-01T10:48:21","slug":"with-reference-to-balance-of-payments-which-of-the-following-constitu","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-balance-of-payments-which-of-the-following-constitu\/","title":{"rendered":"With reference to Balance of Payments, which of the following constitu"},"content":{"rendered":"<p>With reference to Balance of Payments, which of the following constitutes\/constitute the Current Account?<\/p>\n<ul>\n<li>1. Balance of trade<\/li>\n<li>2. Foreign assets<\/li>\n<li>3. Balance of invisibles<\/li>\n<li>4. Special Drawing Rights<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below.<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 and 3&#8243; option3=&#8221;1 and 3&#8243; option4=&#8221;1, 2 and 4&#8243; correct=&#8221;option3&#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; 2014<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2014.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2014\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe correct option is C. The Balance of Trade and Balance of Invisibles constitute the Current Account of the Balance of Payments.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nThe Balance of Payments (BoP) is a statement of all transactions made between entities in one country and the rest of the world over a specific period. It is divided into two main accounts: the Current Account and the Capital Account. The Current Account records transactions in goods, services, income (like remittances, interest, dividends), and current transfers (like gifts, grants).<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\n1. Balance of Trade: Exports minus imports of *goods* (visible trade). This is a component of the current account.<br \/>\n2. Foreign assets: These relate to investments and reserves, which are recorded in the Capital Account or Financial Account (often considered part of the Capital Account structure).<br \/>\n3. Balance of Invisibles: Exports minus imports of *services* and net income and net transfers. This is a component of the current account.<br \/>\n4. Special Drawing Rights (SDRs): These are reserve assets held by countries with the IMF and changes in SDR holdings are typically recorded in the Capital Account or as part of reserve assets, not current transactions.<br \/>\nTherefore, only 1 and 3 are components of the Current Account.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>With reference to Balance of Payments, which of the following constitutes\/constitute the Current Account? 1. Balance of trade 2. Foreign assets 3. Balance of invisibles 4. Special Drawing Rights Select the correct answer using the code given below. [amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 and 3&#8243; option3=&#8221;1 and 3&#8243; option4=&#8221;1, 2 and 4&#8243; correct=&#8221;option3&#8243;] This question was &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to Balance of Payments, which of the following constitu\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-balance-of-payments-which-of-the-following-constitu\/#more-91169\">Detailed Solution<span class=\"screen-reader-text\">With reference to Balance of Payments, which of the following constitu<\/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":[1468,1226],"class_list":["post-91169","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1468","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>With reference to Balance of Payments, which of the following constitu<\/title>\n<meta name=\"description\" content=\"The correct option is C. The Balance of Trade and Balance of Invisibles constitute the Current Account of the Balance of Payments. The Balance of Payments (BoP) is a statement of all transactions made between entities in one country and the rest of the world over a specific period. It is divided into two main accounts: the Current Account and the Capital Account. The Current Account records transactions in goods, services, income (like remittances, interest, dividends), and current transfers (like gifts, grants).\" \/>\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\/with-reference-to-balance-of-payments-which-of-the-following-constitu\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to Balance of Payments, which of the following constitu\" \/>\n<meta property=\"og:description\" content=\"The correct option is C. The Balance of Trade and Balance of Invisibles constitute the Current Account of the Balance of Payments. The Balance of Payments (BoP) is a statement of all transactions made between entities in one country and the rest of the world over a specific period. It is divided into two main accounts: the Current Account and the Capital Account. The Current Account records transactions in goods, services, income (like remittances, interest, dividends), and current transfers (like gifts, grants).\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-balance-of-payments-which-of-the-following-constitu\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:48:21+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":"With reference to Balance of Payments, which of the following constitu","description":"The correct option is C. The Balance of Trade and Balance of Invisibles constitute the Current Account of the Balance of Payments. The Balance of Payments (BoP) is a statement of all transactions made between entities in one country and the rest of the world over a specific period. It is divided into two main accounts: the Current Account and the Capital Account. The Current Account records transactions in goods, services, income (like remittances, interest, dividends), and current transfers (like gifts, grants).","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\/with-reference-to-balance-of-payments-which-of-the-following-constitu\/","og_locale":"en_US","og_type":"article","og_title":"With reference to Balance of Payments, which of the following constitu","og_description":"The correct option is C. The Balance of Trade and Balance of Invisibles constitute the Current Account of the Balance of Payments. The Balance of Payments (BoP) is a statement of all transactions made between entities in one country and the rest of the world over a specific period. It is divided into two main accounts: the Current Account and the Capital Account. The Current Account records transactions in goods, services, income (like remittances, interest, dividends), and current transfers (like gifts, grants).","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-balance-of-payments-which-of-the-following-constitu\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:48:21+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\/with-reference-to-balance-of-payments-which-of-the-following-constitu\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-balance-of-payments-which-of-the-following-constitu\/","name":"With reference to Balance of Payments, which of the following constitu","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:48:21+00:00","dateModified":"2025-06-01T10:48:21+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct option is C. The Balance of Trade and Balance of Invisibles constitute the Current Account of the Balance of Payments. The Balance of Payments (BoP) is a statement of all transactions made between entities in one country and the rest of the world over a specific period. It is divided into two main accounts: the Current Account and the Capital Account. The Current Account records transactions in goods, services, income (like remittances, interest, dividends), and current transfers (like gifts, grants).","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-balance-of-payments-which-of-the-following-constitu\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-balance-of-payments-which-of-the-following-constitu\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-balance-of-payments-which-of-the-following-constitu\/#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":"With reference to Balance of Payments, which of the following constitu"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91169"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91169\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}