Which of the following is NOT a component of Current Account in the Balance of Payments?
A. Trade in services
B. Foreign direct investment
C. Trade in goods
D. Unilateral transfers
Answer: Option B
Solution (By JKSSB Mock Tests)
Foreign direct investment is a component of the Capital Account. Current Account includes merchandise trade, invisibles (services), and unilateral transfers.
Explanation:
Intergenerational equity requires that the burden of financing public expenditure and debt is distributed fairly across generations so that future generations are not unduly burdened.
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