Match each item with its part of the current account.

Match each item with its part of the… — CUET Economics practice

Question 14

MediumOriginal question

Match each item with its part of the current account.

List I	List II
A. Export of tea	I. Services
B. Fees earned by Indian IT firms from US clients	II. Transfers
C. Interest received on India's foreign exchange reserves	III. Goods (visible trade)
D. A gift of medicines from a foreign government	IV. Income

A-III, B-IV, C-II, D-ICorrect answerYour answerA-IV, B-III, C-I, D-IICorrect answerYour answerA-I, B-II, C-III, D-IVCorrect answerYour answerA-III, B-I, C-IV, D-IICorrect answerYour answer

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CorrectNot quiteAnswer D

Correct answer: D

Tea is a good; IT work is a service; interest is income earned on assets; a gift is a transfer.

Concept: Parts of the current account
Typical timeTypical: 90 s
Your timeYours: —

The rule this testsThe current account

Practise this chapter →

Ten questions from Balance of Payments, at your own pace.

Practise this chapter →

Ten questions from Balance of Payments, at your own pace.

Question 14

Explanation