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.

1. Balance of trade — It is the difference between merchandise exports and imports, and is a core part of the Current Account. Verdict: Correct.

2. Foreign assets — Changes in foreign assets are recorded under the Capital/Financial Account, not the Current Account. Verdict: Incorrect.

3. Balance of invisibles — Invisibles include services, income, and transfers; these are part of the Current Account. Verdict: Correct.

4. Special Drawing Rights (SDRs) — SDR-related reserve movements are part of reserve assets/financial account, not the Current Account. Verdict: Incorrect.

Hence, the Current Account includes 1 and 3 only.