Practicing Success
Which of the following options will be recorded on the "Credit side" of the BoP account?
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1 and 2 2 and 3 1, 2 and 3 1, 2, 3 and 4 |
1, 2 and 3 |
All the transactions which results in inflow of currency is recorded in the credit side of the account whereas, all the transactions which results in outflow of currency is recorded in the debit side of the account. Thus, option 1, 2 and 3 results in inflow of the currency, whereas, option 4 i.e. imports of machinery from China would result in outflow of currency in the form of payments. |