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 'Public Provident Fund' is a:
A. long-term small savings scheme
B. short-term trading instrument
C. current account
D. foreign exchange instrument

Correct Answer: Option A


Explanation:
Public Provident Fund is a long-term small savings scheme.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is NOT a type of market based on the degree of competition?
A. Monopoly
B. Barter market as a competition classification
C. Oligopoly
D. Perfect competition

Correct Answer: Option B


Explanation:
Barter refers to exchange without money. Market structures based on competition are perfect competition, monopolistic competition, oligopoly and monopoly.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Employees' State Insurance Corporation' provides medical benefit to insured workers from:
A. day one of insurable employment for certain benefits
B. after one year
C. first day of employment
D. after retirement

Correct Answer: Option A


Explanation:
ESIC medical benefit is available from day one of insurable employment.

This question belongs to: Economy GK Economy Set 1