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Answer

Correct Option is 1 and 3 Only

A nation’s current account maintains a record of the country’s transactions with other nations, that includes net income, including interest and dividends, and transfers, like foreign aid. It comprises of following components: Trade of goods, Services, and Net earnings on overseas investments and net transfer of payments over a period of time, such as remittances. It is measured as a percentage of GDP. The formulae for calculating CAD is: Current Account = Trade gap + Net current transfers + Net income abroad Trade gap = Exports – Imports

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