Which of the following is are the components of Current Account of the Balance of Payments 1 Investm...........

Economic Affairs Balance of Payments

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Which of the following is/are the components of Current Account of the Balance of Payments?

1. Investments of Indian nationals in other countries.

2. Dividends from Foreign Investment

3. Loans from World Bank

Select the correct answer using the code given below.

1 and 2 only

2 only

1 and 3 only

1, 2 and 3

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Explanation:

Under current account of the BoP, transactions are classified into merchandise (exports and imports)
and invisibles.
o Invisible transactions are further classified into three categories, namely (a) Services-travel,
transportation, insurance, Government not included elsewhere (GNIE) and miscellaneous (such as,
communication, construction, financial, software, news agency, royalties, management and business
services); (b) Income; and (c) Transfers (grants, gifts, remittances, ets.) which do not have any quid pro
quo.
o Loans from world bank and the investment by Indian nationals abroad are part of the capital account of
the Balance of Payments.