Practicing Success
Which of the following items can be included in Capital Account in BOP ? (A) An Indian buys a UK Car company Choose the correct answer from the options given below : |
(B) and (C) Only (C) and (D) Only (A) and (D) Only (A) and (B) Only |
(A) and (B) Only |
The correct answer is (A) and (B) Only. The capital account in the balance of payments records capital transactions between residents of one country and those of other countries. These transactions can be classified into two categories:
The other options are incorrect:
Therefore, the only correct answer is that items (A) and (B) can be included in the capital account in the balance of payments. |