In the perspective of Balance of Payment, which of the following are the constituents of Current Account?
1. Balance of Trade
2. Balance of Services
3. Balance of Unrequited Transfers

Select the correct answer using the code given below :
(a) 1 only
(b) 2 and 3 only
(c) 1, 2 and 3
(d) 1 and 2 only

Question

In the perspective of Balance of Payment, which of the following are the constituents of Current Account?
1. Balance of Trade
2. Balance of Services
3. Balance of Unrequited Transfers

Select the correct answer using the code given below :
(a) 1 only
(b) 2 and 3 only
(c) 1, 2 and 3
(d) 1 and 2 only

ONLiNE UPSC · Accepted Answer

Statement 1 is correct : The &ldquo;balance of trade (BOT)&rdquo; is the difference between a country's exports and imports over a period of time. It's also known as the trade balance.

Statement 2 is correct :The "balance of services" refers to the difference between a country's exports and imports of services, which is a key component of the broader balance of payments, specifically within the current account.

Statement 3 is correct : The "Balance of Unrequited Transfers," also known as unilateral transfers, refers to the net value of one-way transfers (like gifts, donations, or remittances) between a country and the rest of the world, recorded in the current account of the balance of payments.

Balance of Payment

Current Account

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M Question 1	⏱ 0
In the perspective of Balance of Payment, which of the following are the constituents of Current Account? 1. Balance of Trade 2. Balance of Services 3. Balance of Unrequited Transfers Select the correct answer using the code given below : (a) 1 only (b) 2 and 3 only (c) 1, 2 and 3 (d) 1 and 2 only