Match List I with List II
| List I | List II | ||
| A. | Investments made abroad | I. | Credit side of the current account of BOP |
| B. | Remittances to a relative staying abroad | II. | Debit side of the current account of BOP |
| C. | Borrowing from IMF | III. | Debit side of the capital account of BOP |
| D. | Export of cotton clothes | IV. | Credit side of the capital account of BOP |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: A-III, B-II, C-IV, D-I
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(A) Investments made abroad → (III) Debit side of capital account
Outflow of capital from the country → debit entry -
(B) Remittances to a relative staying abroad → (II) Debit side of current account. Transfer payment going out → debit in current account
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(C) Borrowing from IMF → (IV) Credit side of capital account
Inflow of funds → credit entry -
(D) Export of cotton clothes → (I) Credit side of current account
Export brings foreign exchange → credit entry