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Management · Q97

International Finance and Treasury

Graduate and Post Graduate · Management · question 97

Q97

Country A imports gold worth USD 100 million for commercial purposes. The transaction will affect

A.
Current account only
B.
Capital account only
C.
Official reserves account only
D.
Both current account and capital account
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Country A imports gold worth USD 100 million for commercial purposes. The transaction will affect both current account and capital account.