Economics • Indian EconomyMedium
In the context of India's external sector, what does 'Invisibles' in the Current Account comprise?
A. Services, income (investment income), and current transfers (remittances).✓ Correct Answer
B. Merchandise trade deficits and foreign portfolio investments.
C. Foreign direct investment and external commercial borrowings.
D. Unregistered border trade and smuggling activities.
💡 Solution & Explanation
In India's Balance of Payments accounts, invisibles within the current account comprise three major sub-components, namely services trade, investment income, and current transfers such as worker remittances. Merchandise trade forms part of the visible account rather than invisibles.
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