which among the following is are likely to result in the current account surplus in the Balance of P...........

Economic Affairs Balance of Payments

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which among the following is/are likely to result in the current account surplus in the Balance of Payments (BoP)?

1. Increase in the remittances received from abroad.

2. Sale of Bonds by Reserve Bank of India in the global market.

3. Fall in global oil prices

Select the correct answer using the code given below.

1 and 2 only

1 and 3 only

3 only

All of the above

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Explanation:

o Statement 1 is correct as the transfer payments which include the remittances, gifts and grants are the
part of the capital account of the Balance of Payments. Any increase in them would likely lead to a
surplus in the current account.
o Statement 2 is not correct. All the international purchases and sales of assets such as money, stocks,
bonds etc. are recorded under the capital account.
o Statement 3 is correct as fall in global oil prices will reduce imports which will increase the current
account surplus.