Assertion (A): Increased lending abroad are recorded on the debit side of the capital account. Reason (R): Lending affect the assets and liabilities of the economy and involves out flow of income.
Answers
Answered by
0
Answer:
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
= The lending to abroad results outflow of foreign currency that also increases the financial assets of a country. Those foreign transactions that affects the coutries financial assets comes in capital account
Similar questions