Which of the following is NOT a component of the current account of India's balance of payments? MCQ with Answer and Explanation

Which of the following is NOT a component of the current account of India's balance of payments?
A. Merchandise trade
B. Invisibles (services, income, transfers)
C. Software exports
D. Foreign direct investment
Answer: Option D
Solution (By JKSSB Mock Tests)
Foreign direct investment is recorded in the capital account. Merchandise trade, services (including software), income and transfers form the current account.

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Practice More Economy Set 1 Questions

Question #1
The concept of 'Degrowth' in ecological economics advocates:
A. Unlimited economic growth
B. The complete abandonment of all economic activity
C. Only growth in developing countries
D. A planned reduction of energy and resource throughput in high-income countries to bring the economy within ecological limits while improving well-being

Correct Answer: Option D


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.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Fiscal Responsibility and Budget Management Act' initially aimed to reduce fiscal deficit to what percentage of GDP by 2008-09?
A. 2%
B. 3%
C. 5%
D. 6%

Correct Answer: Option B


Explanation:
The FRBM Act initially aimed to reduce fiscal deficit to 3% of GDP by 2008-09.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of behavioural economics, 'Anchoring' refers to:
A. Only the use of rational Bayesian updating
B. The tendency for quantitative judgments to be influenced by an initially presented value
C. Only the effect of final outcomes
D. The complete independence of judgments from any initial values

Correct Answer: Option B


Explanation:
Anchoring is a cognitive bias in which individuals rely too heavily on an initial piece of information (the anchor) when making subsequent judgments.

This question belongs to: Economy GK Economy Set 1