Question

The main components of the Capital Account are:

Options

• FII, imports of goods, External Assistance, and foreign exchange reserves

• Exports, imports, tourism, and remittances

• FDI, FII (Portfolio Investment), External Borrowings, and External Assistance

• FDI, export of services, External Borrowings, and repayment of government debt

Answer 1

The components of the Capital Account are FDI, FII (Portfolio Investment), External Borrowings, and External Assistance. Trade in goods and services falls outside the Capital Account.