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 :
Answer & explanation
Correct answer: option 1
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).