Which of the following is a component of the current account of the balance of payments?
A. Trade in goods and services
B. Portfolio investment
C. External commercial borrowings
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:
A nudge is any aspect of choice architecture that alters people’s behaviour in a predictable way without forbidding any options or significantly changing economic incentives, as popularised by Thaler and Sunstein.
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