In relation to the balance of payments, a __________ deals with foreign exchange reserves, investments, loans, and borrowings.
Capital account
The correct answer is option 1. The capital account in the balance of payments deals with foreign exchange reserves, investments, loans, and borrowings. It tracks the inflow and outflow of capital, which includes foreign investments and loans. The other accounts (suspense, financial, and current) focus on different aspects of the economy, like goods, services, and income transfers.
Similar Questions
Which one of the following is an element of capital account in the Balance of Payments?
The ____ Oversees the Foreign Exchange Management Act, 1999.
In 1991, under the external sector reforms, Indian rupee ______.
Credit multiplier is equal to:
In 1991, as an immediate measure to resolve the balance of payments crisis, the rupee was ______ against foreign currencies.
Important Questions from External Sector
Which of the following best describes the term 'import cover', sometimes seen in the news?
With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
(1) Balance of trade
(2) Foreign assets
(3) Balance of Invisibles
(4) Special Drawing Rights
Select the correct answer using the code given below.
Consider the following actions which the Government can take:
1) Devaluing the domestic currency.
2) Reduction in the export subsidy.
3) Adopting suitable policies which attract greater FDI and more funds from FIIs.
Which of the above action/actions can help in reducing the current account deficit?
Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?
Which one of the following groups of items is included in India’s foreign-exchange reserves?
