| 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 codes given below. |
A) Only 1
B) 2 and 3
C) 1 and 3
D) 1, 2 and 4
Correct Answer: C
Solution :
Exp. [c] Foreign assets come under the category of capital account, while the SDRs are a type of foreign only. Thus, these two options are not a part of the current account. Balance of trade, on the other hand, is the net record of total imports and exports of the country, for the period under consideration.
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