Match List- I with List-II List-I

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Match List- I with List-II

List-I		List-II
(A)	Export of Goods	(I)Debit side of the Capital A/c
(B)	Import of Services	(II)Credit side of the Capital A/c
(C)	Investment to Abroad	(III)Debit side of Current A/c
(D)	Borrowings from Abroad	(IV)Credit side of the Current A/c

Choose the correct answer from the options given below :

Options:

(A)-(IV), (B)-(III), (C)-(I), (D)-(II)

(A)-(IV), (B)-(I), (C)-(III), (D)-(II)

(A)-(IV), (B)-(III), (C)-(II), (D)-(I)

(A)-(I), (B)-(II), (C)-(III), (D)-(IV)

Correct Answer:

(A)-(IV), (B)-(III), (C)-(I), (D)-(II)

Explanation:

The correct answer is option (1) : (A)-(IV), (B)-(III), (C)-(I), (D)-(II)

List-I		List-II
(A)	Export of Goods	(IV) Credit side of the Current A/c
(B)	Import of Services	(III) Debit side of Current A/c
(C)	Investment to Abroad	(I) Debit side of the Capital A/c
(D)	Borrowings from Abroad	(II) Credit side of the Capital A/c

Explanation:

Export of Goods (A) leads to earnings, which are recorded on the Credit side of the Current Account (IV).
Import of Services (B) represents payments, which are recorded on the Debit side of the Current Account (III).
Investment to Abroad (C) involves outflows, recorded on the Debit side of the Capital Account (I).
Borrowings from Abroad (D) involves inflows, recorded on the Credit side of the Capital Account (II).