Which of the following statement (s) is/are true?
a) Capital Account records all international transactions of assets.
b) In case current account is in deficit,  Receipts>Payments
c) Sale of assets like sale of shares of Flipkart to Walmart is a credit item on the capital account.

a and c

The correct answer is Option 4: Only statements a and c are correct.

a) Capital Account records all international transactions of assets. True. The capital account records transactions that involve changes in the ownership of assets and liabilities between a country and the rest of the world. This includes financial transactions such as investments, loans, and the purchase and sale of assets.

b) In case current account is in deficit, Receipts > Payments. False. In the case of a current account deficit, payments exceed receipts. A current account deficit occurs when a country’s payments for imports, services, and income exceed its receipts from exports, services, and income.

c) Sale of assets like sale of shares of Flipkart to Walmart is a credit item on the capital account. True. The sale of assets such as shares in a company is recorded as a credit item in the capital account. When an asset (Flipkart) is sold to a foreign entity (Walmart), it represents an inflow of capital into the domestic economy, and thus, is credited in the capital account.

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Capital Account records all international transactions of assets (Statement a is correct):  An asset is any one of the forms in which wealth can be held, for example: money, stocks, bonds, Government debt, etc. Purchase of assets is a debit item on the capital account. If an Indian buys a UK Car Company, it enters capital account transactions as a debit item (as foreign exchange is flowing out of India). On the other hand, sale of assets like sale of share of an Indian company to a Chinese customer is a credit item on the capital account. (Statement c is correct)

Current Account is in balance when receipts on current account are equal to the payments on the current account. A surplus current account means that the nation is a lender to other countries and a deficit current account means that the nation is a borrower from other countries. It means that in case current account is in deficit, Receipts<Payments and the government is required to borrow to meet the shortfall. (Statement b is incorrect)"