2014 · EconomyPrevious Year Question
Q10.
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.
A. 1 only
B. 2 and 3
C. 1 and 3
D. 1, 2 and 4
Answer

C

Explanation

Current account includes balance of trade (exports-imports), remittances, Trade in services. SDRs count as foreign assets.