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Question No. 271Interactive Test Mode
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Q271. With reference to Balance of Payments, which of the following constitutes/ constitute the Current Account? 1. Balance of trade 2. Foreign assets 3. Balance of invisibles 4. Special Drawing Rights Select the correct answer using the code given below.

With reference to Balance of Payments, which of the following constitutes/ constitute the Current Account?

  1. Balance of trade
  2. Foreign assets
  3. Balance of invisibles
  4. Special Drawing Rights Select the correct answer using the code given below.
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2014 • Indian Economy

Correct Answer: Option (C) — 1 and 3

Concept & Option Breakdown

Standard Reference Verified

The Current Account of Balance of Payments comprises:

  1. Merchandise trade (Balance of Trade)
  2. Invisibles (Services, transfers, and income flows). Foreign assets (2) and Special Drawing Rights (4) are components of the Capital and Financial/Reserve Accounts of BoP.
Elimination Heuristic & Exam Approach

SDRs and Foreign Assets represent capital/reserve assets, placing them strictly into the Capital/Financial Account, not the Current Account.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2014 (Q271)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (C) — 1 and 3

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Frequently Asked Questions — UPSC Prelims 2014 Q271

What is the official answer for UPSC Prelims 2014 GS Paper I Question 271 (Indian Economy)?

The official UPSC answer key for this 2014 Indian Economy (Indian Economic Planning & Growth) question is Option (C): "1 and 3". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2014 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

SDRs and Foreign Assets represent capital/reserve assets, placing them strictly into the Capital/Financial Account, not the Current Account.

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