Q. Which of the following is/are consist/s of current account of balance of payments?
2.Interest Payments
Choose the correct answer from below given codes:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: D

Explanation: In the external sector, it refers to the account maintained by every government of the world in which every kind of current transactions is shown—basically this account is maintained by the central banking body of the economy on behalf of the government.

Current transactions of an economy in foreign currency all over the world are—export, import, interest payments, private remittances and transfers.

Source: Ramesh Singh