Question

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. 

(a) 1 only (b) 2 and 3 (c) 1 and 3 (d) 1, 2 and 4

Answer 1

(c) The current account consists of the balance of trade and balance of invisibles.