Question:
Which of the following items is not included in the current account of a country’s Balance of Payments?
(1) invisible exports
(2) interest payment on foreign loans
(3) profits earned from foreign investments
(4) the purchasing of foreign securities
(5) food aid donated by United Nations Organization
Correct Answer:
(4)
Answer Explanation:
The Current Account tracks trade in goods, services (invisible exports), primary income (profits/interest), and secondary income (foreign aid/transfers). The purchasing of foreign securities (like stocks or bonds) involves the transfer of ownership of financial assets, which is strictly recorded in the Financial Account, not the Current Account.
Topic: Balance of Payments Year: 2019
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