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Maharashtra State Service Pre 2026 PracticeMedium

Q.With reference to the Balance of Payments (BoP) of a country, consider the following statements: (a) The Current Account of the BoP records the trade in goods (visible trade), trade in services (invisible trade), and unilateral transfers like remittances. (b) Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) are crucial components recorded under the Current Account. (c) A deficit in the Current Account implies that the value of the country's imports of goods and services is greater than the value of its exports. Which of the statements given above are correct?

a
(1) Only (a) and (b)
b
(2) Only (a) and (c)
c
(3) Only (b) and (c)
d
(4) All of the above

Correct Answer: Option B

The correct solution involves applying the fundamental concept to derive the final value step by step...

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