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Balance of Payments · Question 27 of 53

Question 27

MediumOriginal question

Read the two statements and choose the correct option.

I. Borrowing from abroad is a credit in the capital account.

II. Repaying a foreign loan is a credit in the capital account.

Options for question 27

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Borrowing brings foreign exchange in. I is true.

  2. Repayment sends foreign exchange out, so it is a debit. II is false.

Concept
Capital account entries
Typical time
70 s
Your time
—
The rule this testsThe capital account
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Ten questions from Balance of Payments, at your own pace.

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Ten questions from Balance of Payments, at your own pace.

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