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.

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CollectorBabu · Accepted Answer

Correct Answer: 1 and 3. Balance of Payments (BoP) is a statistical statement that summarizes economic transactions between residents and non-residents during a specific time period. The current account measures the short-term (less than one year) international transactions of real resources (goods, services, income and transfers). Hence options 1 & 3 come under the current account. Foreign assets form a part of capital account, whereas, SDR is a part of International Forex Reserves Account.

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.

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