The capital account items of a country’s balance of payments are given below:
| Item (net) | Million USD |
|---|---|
| External assistance | 5 |
| External commercial borrowings | 20 |
| Short-term debt | 10 |
| Banking capital | 15 |
| Foreign investments | 30 |
| Other flows | −10 |
What is the capital account balance?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 70 million USD
Given (million USD):
External assistance = 5
External commercial borrowings = 20
Short-term debt = 10
Banking capital = 15
Foreign investments = 30
Other flows = −10
The capital account balance is the sum of all these net items.
Capital account balance = 5 + 20 + 10 + 15 + 30 − 10
= 70 million USD
Other flows are negative, so they are subtracted.
Option (2) 90 million USD — this adds other flows as +10.
NCERT (2026-27):
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