Question

under the 'borrowings and lending to ot grom abroad ' of components of capital account of bop , what is debited and credited ? and Why?​

Answer 1

Answer:

borrowings from abroad by government sector and similarly repayment of loans by foreign government are recorded on the positive (credit) side. All transactions of lending to abroad by government sector and similarly repayment of loans to abroad by government sector is recorded as negative or debit item.

Explanation:

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