Question

Current account of the BOP includes _________ only. (Fill up the blank with correct alternative) (a) Foreign direct investment (b) Borrowings from the IMF (c) Outsourced services to India (d) Investment by Facebook in Jio​

Answer 1

(c) outsourced services to India

Answer 2

The Current account of the BOP includes (b) borrowings from the IMF only.

Explanation:

• The current account makes up the balance of the payments account. The current account is made up of the country's visible and unseen exports and imports.
• The capital account includes capital receipts and capital payments, as well as portfolio investments. Borrowing and lending are so documented here.
• It may also keep an official reserve account to administer either a fixed-rate or managed-float regime. It keeps track of the country's interactions with the rest of the globe.