CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

In which sub-account and on which side of balance of payments account, will foreign investment in India be recorded? Give reasons.

Open in App
Solution

Foreign investment will be recorded in the capital account of the balance of payments account because these give rise to foreign exchange liabilities.
Foreign investment will be recorded on the credit side because these bring in foreign exchange to the economy.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Revenue budget
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon