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In which side of the BOP account will the transaction, involving sale of Indian sweaters to South Korea, be recorded? |
On the credit side of current account On the debit side of current account On the debit side of capital account None of the above |
On the credit side of current account |
the correct answer is option 1: Sale of sweaters will be done in exchange of foreign exchange and thus it will cause an inflow of money. Hence, it will be recorded on the credit side of BOP account. |
