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Current Account of Balance of payments d...

Current Account of Balance of payments does NOT include which of the following ?

A

Investments

B

Transfer Payments

C

Trade in Goods

D

Trade in Services

Text Solution

Verified by Experts

The correct Answer is:
A

The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and transfer payments. The main components of the current account are: Trade in goods (visible balance) Trade in services (invisible balance), e.g. insurance and services.
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