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Question
Identify the correct matched-pair from Column A to Column B:
Column A | Column B | ||
(1) | Import of Petroleum from Iran | (a) | Debit side of Current Account |
(2) | BPO services provided by India to USA | (b) | Credit Side of Capital Account |
(3) | Investment by Saudi Aramco in RIL | (c) | Debit Side of Capital Account |
(4) | Export of Spices to Greece | (d) | Debit Side of Current Account |
Options
1 - (a)
2 - (b)
3 - (c)
4 - (d)
MCQ
Solution
1 - (a)
Explanation:
Goods and services imported are documented in the current account. Imports are recorded on the debit side since they result in a foreign exchange outflow in the country.
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Foreign Trade
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