Which of the following forms a part of the capital account of India Remittances received from NRIs l...........

Economic Affairs Others

Download Solution PDF

Which of the following forms a part of the capital account of India?

Remittances received from NRIs living in Saudi Arabia
A loan given to Myanmar
Foreign exchange earned from trade in Invisibles

Select the correct answer using the codes below.

1 and 3 only

2 only

1, 2 and 3 only

1 only

छोटे Courses बड़े Results

Master Others

Prepare through Micro-courses

Try Now

Explanation:

Capital account shows the net change in asset ownership for a nation.

Statement 2: Issuing of external bonds, long-term investment abroad or by foreign residents (FDI), or loans given to foreign countries FII etc. form part of the capital account.

Statement 1 and 3: Trade of any sort, Interest payments and remittances form part of the current account.

Since large capital inflows or outflows can have destabilizing effects on a nation's economy, many countries have controls in place to regulate capital account flows.