Which of the following items will be recorded in the capital account of the Balance of Payments account?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Offshore funds.
The Capital Account of the Balance of Payments (BoP) records all transactions that lead to a change in the assets or liabilities of a country in relation to the rest of the world — i.e., movement of capital.
Offshore funds involve financial investments and capital flows between countries, so they are recorded in the Capital Account.
