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Indias Foreign Trade Policy Business Environment And International BusinessEasy

Which of the following is NOT a component of the current account of the Balance of Payments?

Correct Answer: D — Foreign direct investment

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.