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CBSE 2023 Class 12 Economics Outside Delhi Set 1

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Question : 5 of 52
Marks: +1, -0
As per the Reserve Bank of India (RBI) press report, dated 22  nd 22^{\;\text{nd }} June, 2022:
"Net Foreign Portfolio Investment (FPI) recorded an outflow of US $15.2\$ 15.2 billion mainly from the equity market."
The above transaction will be recorded in the _______ account on _______ side of Balance of payments account of India. (Choose the correct alternative)
Solution:  
capital, debit
Explanation: Foreign portfolio investment is part of capital account of BOP as it affects the assets of a country. While outflow of foreign currency is recorded as debit (negative) item in BOP. Since, it reduces the country's capital account balance.
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