With reference to the Balance of Payments, which of the following constitute(s) the Current Account? 1. Balance of trade 2. Foreign assets 3. Balance of Invisibles 4. Special Drawing Rights Select the correct answer using the code given below.
- A. 1 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 4 only
Answer: C
Explanation
Current account includes balance of trade (exports-imports), net remittances, and trade in services. SDRs count as foreign assets