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Balance of payments - capital account

1 UPSC Prelims MCQs tagged "Balance of payments - capital account". Free practice with answer keys, explanations, and timed mock tests on Anantam IAS.

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  1. The capital account of the balance of payments records transactions that cause a change…

    The capital account of the balance of payments records transactions that cause a change in which one of the following?

    1. ASavings of the private sector
    2. BDisposable income of citizens
    3. CThe ownership of assets and liabilities between a country and the world
    4. DExports and imports of visible goods
    Answer and explanation

    Correct answer: C

    The capital account tracks all transactions that alter a country's foreign assets and liabilities, such as foreign investment, loans and banking flows. Exports and imports of goods belong to the current account, not the capital account.

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    Indian Economy UPSC GPSC-2026 Easy