Arrange the following components as per the sample of Balance of Payments for India.

(A) Trade Balance.
(B) Net Invisibles.
(C) Current Account Balance.
(D) Errors and Omissions.

Choose the correct answer from the options given below:

(A), (B), (C), (D)

The correct answer is Option (1) → (A), (B), (C), (D)

• (A) Trade Balance
  → It is the difference between exports and imports of goods (visible trade).
  → This comes first in the Current Account.

• (B) Net Invisibles
  → Includes services, transfers, and income flows (invisible items).
  → Added to the trade balance to find the Current Account Balance.

• (C) Current Account Balance
  → Calculated as: Current Account Balance=Trade Balance+Net Invisibles

  → This is the next step after combining (A) and (B).

• (D) Errors and Omissions
  → Added after current and capital accounts to balance discrepancies.
  → Hence, it comes last in the sequence.