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.

[UPSC Civil Services Exam – 2013 Prelims]

(a) 1, 2 and 3

(b) 1, 2 and 4

(c) 2, 3 and 4

(d) 1, 3 and 4


Answer: (b)        

Explanation:

  • The capital account shows the net change in the physical or financial asset ownership for a country.
  • It includes Foreign Direct Investment, Portfolio Investment, foreign loans, changes in the reserve account, etc.
  • Hence statements 1,2 and 4 are correct.
  • Private remittances come under the Current account and not the Capital account.
  • Hence statement 3 is not correct.
  • Hence option 2 is correct.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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