Question:
Identify which of the following will appear on the debit side in the Capital Account of India’s Balance of Payments:
Identify which of the following will appear on the debit side in the Capital Account of India’s Balance of Payments:
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Capital account debit entries represent outflows of funds, such as investments abroad or repayment of loans.
Updated On: Jan 31, 2025
- An Indian sending remittances from England.
- Investing in assets abroad by Indians.
- An American company purchasing shares of an Indian company.
- Export of spices from India.
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The Correct Option is B
Solution and Explanation
Investing in assets abroad by Indians represents an outflow of funds from the economy, which is recorded as a debit entry in the Capital Account of the Balance of Payments.
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