UPSC Prelims 2013 – Question 5

Q: Which of the following constitute Capital Account?

• Foreign Loans
• Foreign Direct Investment
• Private Remittances
• Portfolio Investment

Select the correct answer using the codes given below:

a) 1, 2 and 3
b) 1, 2 and 4
c) 2, 3 and 4
d) 1, 3 and 4

Correct Answer: Option (b)

• Foreign Loans, Foreign Direct Investment and Portfolio Investment are part of Capital Account. But the Private Remittances is a part of current account not the Capital Account. Hence, option (b) is correct.

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