Interest paid by India on loans taken from abroad is recorded as

a debit in the capital accountCorrect answerYour answera credit under incomeCorrect answerYour answera debit under goodsCorrect answerYour answera debit under income in the current accountCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Interest is income paid to foreign lenders: a current account debit.
Repaying the loan itself would be a capital account debit.

Concept: Interest on foreign loans
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe current 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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Interest paid by India on loans taken from abroad is recorded as

Explanation