Multiple choice

Which one of the following items is not included in the current account of India's balance of payments?

  1. Short-term commercial borrowings

  2. Non-monetary gold investments

  3. Investment income

  4. Transfer payments
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The current account of the balance of payments records trade in goods, services, primary income, and secondary income. Non-monetary gold investments are typically considered capital account transactions or financial assets, not current account items.

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