Which of the following is a component of the current account of the balance of payments?
A. Trade in goods and services
B. External commercial borrowings
C. Portfolio investment
D. Foreign direct investment
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:
Frictional unemployment occurs due to the time lag involved in people searching for and moving between jobs. It is short-term and voluntary in nature.
Explanation:
Core inflation excludes volatile components such as food and energy, providing a clearer picture of persistent inflationary pressures for monetary policy decisions.
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