Current Account components of trade in services include:
(A) Gifts, Remittances
(B) Net Non-Factor Income
(C) Net Investment Income
(D) Grants
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The components of the Current Account related to trade in services include B and C:
- (B) Net Non-Factor Income: This includes net earnings from services like tourism, transportation, and other services.
- (C) Net Investment Income: This includes income from investments and financial assets.
Gifts and grants, represented by (A) and (D), are more related to transfer payments and are not considered components of trade in services in the Current Account.
