Which of the following is a capital account transaction in the balance of payments? MCQ with Answer and Explanation

Question

Share Report Error

Which of the following is a capital account transaction in the balance of payments?

A. Interest payments on external debt

B. Remittances from non-resident Indians

C. Export of software services

D. Foreign direct investment inflows

Answer: Option D

Solution (By JKSSB Mock Tests)

Foreign direct investment is a capital account transaction. Software exports, remittances and interest payments are current account items.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The 'working-age population' in India is usually defined as persons aged:

A. 15-59 or 15-64 depending on definition

B. 18-70

C. 21-65

D. 10-60

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
Working-age population is generally 15-59 or 15-64 depending on the survey definition.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is NOT a source of agricultural finance in India?

A. Stock exchanges for small farmers

B. Commercial banks

C. NABARD

D. Cooperative societies

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option A

Explanation:
Stock exchanges primarily serve corporate entities. Agricultural finance is provided by commercial banks, cooperatives, RRBs and refinanced by NABARD.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'snob effect' in consumer behaviour refers to:

A. following popular trends

B. buying goods to appear exclusive and different

C. buying only necessities

D. buying more when price falls

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
The snob effect is consumer preference for exclusive goods that set them apart.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs