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Question : 17
Total: 60
From the following, which of the item would appear on the credit side of capital account of the balance of payment in India?
Solution:
(b) Borrowings from rest of the world.
Explanation: Borrowings from foreign countries on the international money market are recorded in the capital A/c of the BOP. These borrowing lead to an inflow of foreign exchange and are treated as positive items in the capital account of BOPs.
Explanation: Borrowings from foreign countries on the international money market are recorded in the capital A/c of the BOP. These borrowing lead to an inflow of foreign exchange and are treated as positive items in the capital account of BOPs.
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