Match the following
| 1. | Trade balance | A. | Capital account |
| 2. | Foreign direct investment | B. | Increase in exports |
| 3. | Indian travelling to Japan | C. | Difference b/w export and import of visible items |
| 4. | Devaluation of rupee | D. | Debit side of Bop account |
Answer & explanation
Correct answer: option 1
Difference b/w export and import of visible items is called as balance of trade or trade balance
FDI comes under capital account of the BoP
Indian travelling to japan results in outflow of foreign exchange, which means it will be recorded on the debit side of the BoP account
Devaluation of rupee results in rise in exports of the country