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The Current account of the balance of payments (BoP) includes
1. Foreign aid.
2. Foreign institutional investments.
3. Remittances.
Select the correct answer using the codes given below.
1 only
1 and 3 only
3 only
2 and 3 only
Foreign institutional investments are not part of Current Account of Balance of Payments. The current account is an important indicator about an economy's health. It is defined as the sum of the balance of trade (goods and services exports less imports), net income from abroad and net current transfers. The balance of payments, also known as balance of international payments and abbreviated BoP, of a country is the record of all economic transactions between the residents of the country and the rest of the world in a particular period (over a quarter of a year or more commonly over a year).
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