If an Indian buys a UK car company, it enters__________(Account/Capital Account) of Balance of Payments as a__________(debit/credit) item.
Answers
Answered by
0
Answer:
A) Debit ,capital a/c
Explanation:
as it is investment it is capital in nature
Answered by
2
Answer:
Concept:
Capital Account and Debit
Explanation:
Foreign investments are recorded on the CREDIT (positive) side of the CAPITAL account because they bring in foreign exchange and increase the country's capital stock. These include investments by the rest of the world in shares of Indian companies, real estate in India, and so on.
Transferring funds to relatives in another country is recorded on the DEBIT side of the CURRENT account because it is a one-way transaction. It includes gifts, donations, and personal remittances, among other things.
#SPJ2
Similar questions