Which of the following is NOT a component of the capital account of Balance of Payments? MCQ with Answer and Explanation

Which of the following is NOT a component of the capital account of Balance of Payments?
A. Remittances from abroad
B. Foreign direct investment
C. External commercial borrowings
D. Portfolio investment
Answer: Option A
Solution (By JKSSB Mock Tests)
Remittances from abroad are unilateral transfers and form part of the current account. Capital account includes FDI, portfolio investment and external borrowings.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on real estate under-construction commercial property is:
A. 18%
B. 12%
C. 28%
D. 5%

Correct Answer: Option B


Explanation:
Commercial under-construction property attracts 12% GST with ITC.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'National Mission on Education through Information and Communication Technology' was launched to enhance:
A. banking technology
B. education through ICT
C. defence technology
D. agricultural technology

Correct Answer: Option B


Explanation:
NMEICT aims to enhance education through ICT.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'industrial licensing' after 1991 was retained for certain industries related to:
A. consumer goods
B. textiles
C. security, strategic and environmental concerns
D. food processing

Correct Answer: Option C


Explanation:
Licensing was retained for industries related to security, strategic and environmental concerns.

This question belongs to: Economy GK Economy Set 1