n NISM Certifications
XV NISM Series XV
Medium

Which of the following is not a component of the capital account of a country?

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Capital flows like FDI

  2. B

    Capital flows like FII

  3. Capital flows from Exports

    Correct answer

  4. D

    Capital flows from Loans

Why this is the answer

Exports are part of the current account of the balance of payments, as they relate to trade in goods and services. The capital account records capital movements such as foreign investment and loans.

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