Which of the following constitute Capital Account 1 Foreign Loans 2 Foreign Direct Investment 3 Priv...........

Economic Affairs Balance of Payments

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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:

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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

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