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.
Important Questions from External Sector
Which function is used to calculate the maximum value in a selected column in MS Excel?
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:
