Which of the following transactions belong to the Current account?
I. Balance of services.
II. Unrequited transfers.
III. Purchase of a foreign company.
IV. Income from foreign investments.
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A. B. C. D. E. F. G. H.D
The current account consists of Trade and Services balance, Net income from all foreign investments and Unrequited transfers, which include aid to foreign countries, losses due to expropriation of property by foreign governments, etc. Hence, I, II and IV are directly specified as part of the Current account. A purchase of a foreign firm is a capital investment and as such belongs to the Capital account.