Question

Which among the following are recorded in the Balance of Payment (BoP)?

A All import items Correct Answer Incorrect Answer
B All export items Correct Answer Incorrect Answer
C All FDI into India Correct Answer Incorrect Answer
D Loan taken by India from abroad Correct Answer Incorrect Answer
E All of the above Correct Answer Incorrect Answer

Solution

In all the above cases, money is crossing national border. Thus all the transactions would be recorded in BoP. Import and exports are written in the Current Account. FDI (Foreign Direct Investment) and loan from abroad will be under Capital Account

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