Question

    Which type of income is included in the current account

    of the Balance of Payments (BoP)? 
    A External assistance Correct Answer Incorrect Answer
    B Profits from foreign investments Correct Answer Incorrect Answer
    C Non-resident deposits Correct Answer Incorrect Answer
    D Portfolio investments Correct Answer Incorrect Answer

    Solution

    The current account of the Balance of Payments includes compensation of employees and investment income. Investment income primarily covers profits, dividends, and interest earned from foreign investments. Other options, such as external assistance and portfolio investments, fall under different components of the BoP. 

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