Which of the following is are part of Capital Account 1 Net flow of private and public investment in...........

Economic Affairs Public Finance and Debt Management

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Which of the following is/are part of Capital Account?

1.Net flow of private and public investment into an economy

2.Foreign direct investment

3.Export and Import

Select the correct answer using the codes given below

3 only

1 and 2 only

1 and 3 only

All the above

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Explanation:

1 and 2 only

"Net flow of private and public investment into an economy" - This is part of the capital account. It includes investments like foreign direct investment (FDI) and foreign institutional investments (FII).

"Foreign direct investment" - This is also part of the capital account. Foreign direct investment involves long-term investments made by foreign entities in the domestic economy, such as acquiring businesses or establishing new ventures.

"Export and Import" - Export and import transactions are part of the current account, not the capital account. The current account includes trade in goods and services.

Therefore, the correct answer is 2, "1 and 2 only."

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