Loading practice questions
Which of the following is NOT a component of the current account of the Balance of Payments?
Correct Answer: D — Foreign direct investment
Explanation:
The correct answer is D: Foreign direct investment.
Foreign direct investment (FDI) is a component of the capital/financial account, not the current account. The current account includes trade in goods (visible trade), trade in services (invisible trade), and unilateral transfers such as remittances and foreign aid.