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

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Question

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

Options

  • Imports of goods

  • Borrowings from abroad

  • Unilateral transfer payments made to foreigners

  • Purchase of assets abroad

MCQ
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Solution

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.
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Chapter 15: Balance of Payments and Exchange Rate - TEST YOURSELF QUESTIONS [Page 294]

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Frank Economics [English] Class 12 ISC
Chapter 15 Balance of Payments and Exchange Rate
TEST YOURSELF QUESTIONS | Q 5. | Page 294
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