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Question
Which of the following constitute Capital Account?
1. Foreign Loans
2. Foreign Direct Investment
3. Private Remittances
4. Portfolio Investment
Select the correct answer using the codes given below.
(a) 1, 2 and 3
(b) 1, 2 and 4
(c) 2, 3 and 4
(d) 1, 3 and 4
Answer:
B
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Explanation:
The Capital Account includes foreign loans, foreign direct investment (FDI), and portfolio investment. Private remittances are not part of the Capital Account and are categorized under the Current Account. Therefore, the correct answer is (b) 1, 2, and 4.
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