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    Question

    Which among the following is NOT included in the capital

    account of a country?
    A Exports and Imports Correct Answer Incorrect Answer
    B FDI Correct Answer Incorrect Answer
    C FII Correct Answer Incorrect Answer
    D External Commercial Borrowing Correct Answer Incorrect Answer
    E Financial Assets by migrants leaving or entering the country Correct Answer Incorrect Answer

    Solution

    Capital Account of a country records all the international purchases and sale of assets such as money, stocks, bonds etc. It includes all the international capital transfer such as Foreign Direct Investment (FDI), Foreign Institutional Investment (FII), External Commercial Borrowing (ECB), financial assets by migrants leaving or entering the country. The exports and imports of a country are included in the current account of a country. 

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