The current account of the balance of payments includes

Indian Economy and Banking · Economic & Social Development · Hard · Practice for UPSC CSE GS 1

The current account of the balance of payments includes

  1. External commercial borrowings
  2. Foreign direct investment
  3. Changes in forex reserves
  4. Trade in goods and services, primary income and transfers
Answer and solution

Correct answer: D) Trade in goods and services, primary income and transfers

Investment flows are in the capital and financial account.

Learn the method: Indian Economy and Banking rules and worked examples · UPSC CSE GS 1 Economic & Social Development

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