Advertisements
Advertisements
Question
Identify the correctly matched pair from Column A to Column B:
| Column A | Column B | ||
| (1) | Increase of Foreign Reserve from $400 to $450 million | (a) | Credit side of Capital Account |
| (2) | Dassault Ltd. invested in Reliance Defence | (b) | Debit Side of Capital Account |
| (3) | India gave the line of credit to Botswana | (c) | Credit Side of the Capital Account |
| (4) | India borrowed $ 350 million from the world bank | (d) | Debit Side of the Capital Account |
Options
1 - (a)
2 - (b)
3 - (c)
4 - (d)
MCQ
Solution
2 - (b)
Explanation:
A debit to capital a/c indicates that the company owes its owners less money (Le. reduces the business capital.)
shaalaa.com
Balance of Payments - Capital Account
Is there an error in this question or solution?
