Question

In India's BoP structure, 'Trade Balance' and 'Invisibles (Net)' are recorded under which category?

Options

• Accommodating Item

• Current Account

• Separate Item

• Capital Account

Answer 1

In India's BoP structure, both the Trade Balance and Invisibles (Net) fall under the Current Account. Their sum yields the Current Account Balance, while FDI, Portfolio Investment, Debt, and Banking Capital fall under the Capital Account.