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Question
Foreign capital long-term loan and foreign currency reserve are recorded under ______.
Options
Official Capital
Private Capital
Banking Capital
Both Private and Official Capital
Solution
Foreign capital long- term loan and foreign currency reserve are recorded under Both Private and Official Capital.
Explanation:
Foreign capital, long-term loans, and foreign currency reserves can be classified as private capital (private investments or loans from private companies) and official capital (government or public sector loans, reserves, and investments). The balance of payments (BOP) categorizes these inflows according to their source, whether private or official.
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