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Indian Economic System(CSC)

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Indian Economy - Understanding the basics of Indian economic system

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Which of the following constitute Capital Account?

1. Foreign Loans

2. Foreign Direct Investment

3. Private Remittances

4. Portfolio Investment

Select the correct answer using the codes given below:

This questions was previously asked in

UPSC CSP Previous Year Paper (2013)

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1, 2 and 3

1, 2 and 4

2, 3 and 4

1, 3 and 4

Explanation:

Capital account can be regarded as one of the primary components of the balance of payments of a nation. It gives a summary of the capital expenditure and income for a country. It consist of Foreign investment in India (ReFI (FDI, FII), ADR, Direct purchase of land or assets), External commercial borrowing (IMF, WB, ADB etc.), External assistance & Grants etc.,

Private Remittances forms a part of current account and not capital account

By: Abhipedia

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