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UPSC 2013: Which of the following constitute Capital Account? 1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment Select the correct answer using the codes given below.
(a)1, 2 and 3
(b)1, 2 and 4
(c)2, 3 and 4
(d)1, 3 and 4
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Not attemptedCorrect Answer: (b) 1, 2 and 4
The capital account records transactions that change a country’s asset-liability position. Foreign loans (external borrowing), Foreign Direct Investment (FDI) and Portfolio Investment are capital inflows/outflows, so 1, 2 and 4 belong to the capital account. Private remittances are current-account (transfer) items, so statement 3 is NOT part of the capital account. Therefore the correct set is 1-2-4. ([edukemy.com](https://edukemy.com/blog/upsc-prelims-2013-question-5/?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2013 Indian Economy question?▼
The correct answer is option (b): 1, 2 and 4. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this External Sector & Balance Of Payments question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2013, GS Paper 1, as Question 56. It falls under Indian Economy > External Sector & Balance Of Payments.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from External Sector & Balance Of Payments?▼
UPSC has asked 49 questions from External Sector & Balance Of Payments (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.