Question:
“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth Rs. 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.”
The above-mentioned transactions will be recorded on ______ side of _________ account of Balance of Payments of India.
(Choose the correct alternative to fill in the blanks)
“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth Rs. 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.”
The above-mentioned transactions will be recorded on ______ side of _________ account of Balance of Payments of India.
(Choose the correct alternative to fill in the blanks)
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Capital account transactions involve cross-border investments and loans. Debit entries indicate outflows, while credit entries reflect inflows.
Updated On: Jan 30, 2025
- Debit, Current
- Credit, Capital
- Credit, Current
- Debit, Capital
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The Correct Option is D
Solution and Explanation
Foreign Institutional Investors (FIIs) selling off their holdings results in capital outflows. In the Balance of Payments (BoP), such outflows are recorded on the debit side of the capital account.
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