With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?

1. Balance of trade
2. Foreign assets
3. Balance of invisibles
4. Special Drawing Right

Select the correct answer using the code given below.
a) 1 only
b) 2 and 3
c) 1 and 3
d) 1, 2 and 4

Answer : [C] 

Explanation –Balance of invisible means difference between the imports and exports of services as opposed to those of goods.

The current account is defined as the sum of the balance of trade (goods and services exports minus imports), net income from abroad and net current transfers.

A positive current account balance indicates that the nation is a net lender to the rest of the world, while a negative current account balance indicates that it is a net borrower from the rest of the world.