Question:
The current account balance in an open economy:
The current account balance in an open economy:
Show Hint
Understand the components of current account.
Updated On: Feb 11, 2026
- Always includes the balance on investment income
- Never includes the balance on investment income
- Includes the balance on investment income and flows of investment
- Includes flows of investment but not the balance on investment income
Hide Solution
Verified By Collegedunia
The Correct Option is A
Solution and Explanation
The current account balance in an open economy includes income from foreign investments. This includes the income earned by residents of the economy from abroad, such as dividends, interest, and profits. It reflects the net flows of income from foreign assets owned by residents. Hence, the correct answer is (a).
Was this answer helpful?
0
0
Top Questions on National Income Accounting
- Which of the following is not considered in the calculation of GDP?
- CUET (PG) - 2026
- Economics
- National Income Accounting
- Calculate the value of Net Value Added at Factor Cost (NVA\textsubscript{FC}):
S. No. Particulars Amount (in ₹ crore) (i) Operating Surplus 3,740 (ii) Increase in unsold stock 600 (iii) Sales 10,625 (iv) Purchase of raw materials 2,625 (v) Consumption of fixed capital 500 (vi) Subsidies 400 (vii) Indirect taxes 1,200 - CBSE CLASS XII - 2025
- Economics
- National Income Accounting
On the basis of the given data, estimate the value of National Income (NNPFC):
S.No. Items Amount (in ₹ Crore) (i) Household Consumption Expenditure 1,800 (ii) Gross Business Fixed Capital Formation 1,150 (iii) Gross Residential Construction Expenditure 1,020 (iv) Government Final Consumption Expenditure 2,170 (v) Excess of Imports over Exports 720 (vi) Inventory Investments 540 (vii) Gross Public Investments 1,300 (viii) Net Indirect Taxes 240 (ix) Net Factor Income from Abroad (-) 250 (x) Consumption of Fixed Capital 440 - CBSE CLASS XII - 2025
- Economics
- National Income Accounting
- Suppose there are only three firms in an imaginary economy, viz. X, Y and Z. During a year, the following transactions took place in the economy:
(I) Firm X sold goods worth ₹ 20,000 to Firm Y and ₹ 12,000 to Firm Z.
(II) Firm Y sold goods worth ₹ 11,000 to Firm X and ₹ 35,000 to Firm Z.
(III) Firm Z sold goods worth ₹ 57,000 to households for final consumption.
On the basis of the given transactions, calculate the value of Gross Domestic Product at Market Price (GDP\textsubscript{MP}) in the economy.- CBSE CLASS XII - 2025
- Economics
- National Income Accounting
- To arrive at the value of Net Value Added at Market Price (NVA$_{MP}$), ....... must be ....... to/from Gross Value Added at Market Price (GVA$_{MP}$). (Choose the correct option to fill in the blanks)
- CBSE CLASS XII - 2025
- Economics
- National Income Accounting
View More Questions
Questions Asked in CUET PG exam
- What is the standard sequence of steps in a PCR (Polymerase Chain Reaction) cycle?
- CUET (PG) - 2026
- Molecular Biology
- The light pink colour of \([Co(H_2O)_6]^{2+}\) and the deep blue colour of \([CoCl_4]^{2-}\) are due to:
- CUET (PG) - 2026
- Coordination chemistry
- The keys 5, 28, 19, 15, 26, 33, 12, 17, 10 are inserted into a hash table using the hash function $h(k) = k \mod 9$. The collisions are resolved by chaining. After all the keys are inserted, the length of the longest chain is ________. (answer in integer)
- The number of isomers having non-zero dipole moment for \(PCl_2F_3\) in the trigonal bipyramidal geometry is
- CUET (PG) - 2026
- Chemical bonding and molecular structure
- Hybridizations of the atoms indicated with the asterisk (*) in the following compounds sequentially are
- CUET (PG) - 2026
- Chemical bonding and molecular structure
View More Questions