Match List-I with List-II.

Choose the correct answer from the options given below :

(A)-(IV), (B)-(II), (C)-(I), (D)-(III)

The correct answer is option (4) : (A)-(IV), (B)-(II), (C)-(I), (D)-(III)

Visible items refer to tangible goods that are physically transported across international borders and are recorded in a country's balance of payments as imports or exports. When a country purchases goods from another country like Japan, it is considered a visible item because it involves the physical movement of goods.

Capital transfers involve the transfer of financial assets or liabilities between countries or within the same country, where the transactions are not made in exchange for goods, services, or assets. In this case, when the central government receives a loan from a state government, it represents a capital transfer because it involves a financial transaction without an exchange of goods or services.

Invisible items refer to transactions that involve services, income, or transfers of money that do not result in the physical movement of goods across borders. These include services like consultancy, software exports, income from foreign investments.

Unilateral transfers are transactions where one party transfers money, goods, or services to another without receiving anything in return. In this case, Grants received from World Bank is such an example.