Question:
[Table Data] Trade balance = 120.1, Services balance = 29.3, Primary income balance = -25.8, Secondary income balance = 11.5… What is the balance of the current account?
(1) Rs. 149.4 billion
(2) Rs. 135.1 billion
(3) Rs. 100 billion
(4) Rs. 12.6 billion
(5) Rs. -135.1 billion
Correct Answer:
(2)
Answer Explanation:
The Current Account Balance is simply the sum of its four primary sub-accounts. CAB = Trade Balance + Services Balance + Primary Income Balance + Secondary Income Balance. Substituting the values: $120.1 + 29.3 + (-25.8) + 11.5$. Add positives: $120.1 + 29.3 + 11.5 = 160.9$. Subtract negative: $160.9 – 25.8 = 135.1$.
Topic: Balance of Payments Year: 2024
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