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 Rights Select the correct answer using the code given below.

The Balance of Payments (BoP) is a statement of all transactions made between entities in one country and the rest of the world over a specified period, typically a year. It is divided into two main accounts: the Current Account and the Capital Account.

The Current Account records the flow of goods, services, income, and unilateral transfers. Specifically, it includes:

Balance of Trade (Visible Trade): This refers to the value of exports and imports of goods (physical commodities). Balance of Invisibles: This encompasses the value of exports and imports of services (e.g., software, tourism, shipping, banking), income (e.g., remittances, interest, dividends on investments), and current transfers (e.g., grants, gifts, workers' remittances). Foreign assets and Special Drawing Rights (SDRs) are components typically found in the Capital Account or are part of a country's official reserve assets, not the Current Account. Foreign assets relate to financial claims, while SDRs are international reserve assets created by the International Monetary Fund (IMF).