The current account in the balance of payments is a record of a country`s transactions with the rest of the world involving the exchange of goods and services, primary and secondary income.
1. Balance of trade: The balance of trade is the difference between the value of a country`s exports of goods and services and its imports of goods and services. If a country`s exports are greater than its imports, it has a trade surplus, and if its imports are greater than its exports, it has a trade deficit.
2. Foreign assets: Foreign assets are not a part of the current account. Instead, they are recorded in the capital account, which is a separate record of a country`s international financial transactions, including capital flows such as investments, loans, and purchases of foreign assets.
3. Balance of invisibles: The balance of invisibles refers to the value of a country`s intangible transactions with other countries, such as services like banking, insurance, and shipping. It includes income earned from investments abroad, as well as payments made to foreigners for the use of their property, patents, and copyrights.
4. Special Drawing Rights (SDRs): SDRs are an international reserve asset created by the International Monetary Fund (IMF) and are not a part of the current account. They are a form of international currency that can be used by member countries to settle international debts.
Therefore, the correct answer to the given question is "1 and 3", as the current account includes the balance of trade and the balance of invisibles.