Question

State any four items of the current account of the balance of payments account.

Explain any four items of the current account of the balance of payments account.

Answer 1

1. Export of goods (merchandise): Selling goods like textiles, machinery, and software to other countries.
2. Import of goods: Buying goods like oil, electronics, and vehicles from other countries.
3. Export/import of services (e.g., tourism, IT, shipping): Earning or paying for services like tourism, IT services, banking, and shipping.
4. Unilateral transfers (e.g., remittances, gifts, foreign aid): one-way transfers like remittances sent by Indians working abroad, gifts, and donations received or sent.