Question of the Day


• The capital account, on a national level, represents the balance of payments for a country. The capital account keeps track of the net change in a nation’s assets and liabilities during a year. The capital account’s balance will inform economists whether the country is a net importer or net exporter of capital.

• Under the Capital Account of India, both equity and debt flows are covered.

•Debt flows comprise: commercial borrowings, external assistance, short-term trade credits and Non-Resident Indian (NRI) deposits.

• Equity flows comprise: Foreign Direct Investment (FDI) , Portfolio Investment.

Hence all the options are correct i.e. Option A is the correct choice.

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