Question:
Which of the following does not come in Capital Account?
Which of the following does not come in Capital Account?
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One-way payments like gifts or aid (unilateral transfers) are part of the Current Account, not the Capital Account.
Updated On: Sep 12, 2025
- Government transaction
- Direct investment
- Unilateral transfer
- None of these
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The Correct Option is C
Solution and Explanation
Government transactions (like loans) and Direct investment (FDI) are asset transactions and belong to the Capital Account.
Unilateral transfers are one-way payments, such as gifts, donations, or personal remittances, for which nothing is received in return. These do not create or liquidate assets and are therefore recorded under the Current Account, not the Capital Account.
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