Question

The balance of capital account under the balance of payments of a country records which of the following transactions:

पर्याय

• borrowing and lending from abroad

• sales and purchase of assets abroad

• export and import of services

• none of these

Answer 1

Borrowing and lending from abroad and sales and purchase of assets abroad

Explanation:

The capital account under the Balance of Payments (BoP) records all international economic transactions that directly cause a change in the assets or liabilities of a country’s residents or its government relative to the rest of the world. It includes financial flows such as external borrowings and lending as well as investments in foreign assets (like real estate, shares, FDI, and portfolio investments). Conversely, the export and import of services (c) does not change asset/liability status and is recorded as an “invisible” item under the current account.