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UPSC 2014: With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? 1. Balance of trade 2. Foreign assets 3. Balance of invisibles 4. Special Drawing Rights Select the correct answer using the code given below.
(a)1 only
(b)2 and 3
(c)1 and 3
(d)1, 2 and 4
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Not attemptedCorrect Answer: (c) 1 and 3
The Current Account records flows of goods and services. Hence Balance of trade (exports–imports of goods) and Balance of invisibles (services, remittances, income transfers) are part of it. Foreign assets and IMF Special Drawing Rights are reserve/financial items that appear in the Capital/Financial Account, not the Current Account. ([compass.rauias.com](https://compass.rauias.com/upsc-prelims/economy-pyq/?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2014 Indian Economy question?▼
The correct answer is option (c): 1 and 3. 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 2014, GS Paper 1, as Question 30. 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.