Which of the following is a component of the current account of the balance of payments?
A. Trade in goods and services
B. Foreign direct investment
C. Portfolio investment
D. External commercial borrowings
Answer: Option A
Solution (By JKSSB Mock Tests)
The current account includes merchandise trade, trade in services, primary income and secondary income (transfers). FDI, portfolio investment and ECBs are capital account items.
Explanation:
India's foreign exchange reserves consist of foreign currency assets, gold, Special Drawing Rights and the reserve tranche position in the IMF.
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