Which of the following is NOT a component of the capital account of Balance of Payments?
A. Portfolio investment
B. Foreign direct investment
C. External commercial borrowings
D. Remittances from abroad
Answer: Option D
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.
Explanation:
For complementary goods (e.g., car and petrol), an increase in the price of one leads to a decrease in demand for the other, so cross elasticity is negative.
The concept of 'Degrowth' in ecological economics advocates:
A.A planned reduction of energy and resource throughput in high-income countries to bring the economy within ecological limits while improving well-being
B.Unlimited economic growth
C.Only growth in developing countries
D.The complete abandonment of all economic activity
Explanation:
Degrowth is a school of thought that calls for a democratically planned downscaling of production and consumption in over-consuming countries in order to achieve ecological sustainability and social justice.
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