Which of the following options will be recorded on the "Credit side" of the BoP account?

• Loan from IMF to cover the deficit in BoP account
• Purchase of shares of Reliance by a Britisher
• Export of coffee to South Africa
• Import of machines from China

1, 2 and 3

The correct answer is Option 3: 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.

• Loan from IMF: When a country receives a loan from the IMF to cover its BoP deficit, it's considered an inflow of foreign exchange. This inflow is recorded on the credit side of the BoP account.  

• Purchase of shares of Reliance by a Britisher: When a foreigner purchases shares of an Indian company, money flows into the country, so this will also be recorded on the credit side.
• Export of coffee to South Africa: Exports result in an inflow of foreign currency, so this is recorded on the credit side.
• Import of machines from China: Imports result in an outflow of foreign currency, so this will be recorded on the debit side, not the credit side.