Macroeconomics: Open Economy Macroeconomics · Class 12 · CBSE · Commerce Economics
Which of the following is recorded in the current account of the balance of payments?
Practice question from Macroeconomics: Open Economy Macroeconomics (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-175A90
Which of the following is recorded in the current account of the balance of payments?
- A.Foreign direct investment received from abroad
- B.Export of software servicesCorrect answer
- C.Purchase of foreign government securities
- D.External commercial borrowing
Solution
The current account records exports and imports of goods and services, income flows and unilateral transfers. Export of software services is an export of services and is therefore included in the current account.
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