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  1. Home
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International Relations·Easy

Which of the following will have an effect on the Current Account Deficit of India? 1. Infosys providing ‘Finacle’ digital banking solution to a French multi-national bank Société Générale. 2. Japan International Co-operation Agency providing assistance to infrastructure development of North- east and Delhi-Mumbai Industrial Corridor. 3. Priya, a London-resident Indian, holding deposits in the State Bank of India in India. Select the correct answer using the code given below:

Which of the following will have an effect on the Current Account Deficit of India?

1. Infosys providing ‘Finacle’ digital banking solution to a French multi-national bank Société Générale.

2. Japan International Co-operation Agency providing assistance to infrastructure development of North- east and Delhi-Mumbai Industrial Corridor.

3. Priya, a London-resident Indian, holding deposits in the State Bank of India in India.

Select the correct answer using the code given below:

Options

  1. a.

    1 only

    Correct answer
  2. b.

    1 and 3 only

  3. c.

    2 and 3 only

  4. d.

    1, 2 and 3

Explanation

Current Account in the Balance of Payments (BoP) includes ‘balance of trade’ and ‘balance of invisibles’. Deposits maintained in India by Indian diaspora and external assistance constitutes the Capital Account in the BoP.

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