Microsoft company makes an investment of 100 million USD in India. With respects to balance of payments this will be recorded in _____________.
(A) Debit side of Current Account
(B) Credit side of Capital Account
(C) Credit side of Current Account
(D) Debit side of Capital Account
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : (B) Only
Explanation : Foreign investment, such as Microsoft's investment in India, is recorded on the credit side of the Capital Account in the balance of payments.