Q.The import and export of goods (visible/merchandise items) is recorded in which account of India's Balance of Payments?

Visible trade in goods is one of the three components making up this specific account of the Balance of Payments. …

The Current Account of the Balance of Payments records transactions of a recurring, income-generating nature, and has three components: trade in goods (visible trade — exactly what the Balance of Trade measures), trade in services (invisible trade), and income and unilateral transfers (interest/profits/dividends and remittances). Option (a), the Capital Account, instead records international CAPITAL transactions — FDI, FPI, external borrowing/lending and changes in foreign exchange reserves — not trade in goods. Option (c), 'Reserve Account', is not a standard, separate BOP account in this syllabus's framework — changes in foreign exchange reserves are themselves recorded within the Capital Account, not as an indepen …

Students sometimes confuse the Current Account with the Capital Account because both are part of the same Balance of Payments — remembering that the Current Account covers goods/services/income/transfers while the Capital Account cov …