Question

Which of the following items will be recorded on the credit side of the balance of payments account of a country?

विकल्प

• Imports of goods

• Borrowings from abroad

• Unilateral transfer payments made to foreigners

• Purchase of assets abroad

Answer 1

Borrowings from abroad

Explanation:

• Borrowings from abroad bring foreign currency into the country, which is considered an inflow of funds.
• Such inflows are recorded on the credit side of the balance of payments account.