47 Views

Question : Which of the following transactions would be recorded as a debit entry in the Balance of Payments?

Option 1: Export of goods

Option 2: Import of services

Option 3: Foreign investment in domestic assets

Option 4: Receipt of foreign aid


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Import of services


Solution : The correct answer is (b) Import of services.

The transaction that would be recorded as a debit entry in the Balance of Payments is Import of services.

In the Balance of Payments, a debit entry represents an outflow of foreign exchange or a decrease in a specific account.

Import of services transaction involves an outflow of foreign exchange as the country is paying for services received from abroad. Therefore, it would be recorded as a debit entry in the Balance of Payments.

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Greater Noida Institute of Te...
Apply
NAAC A+ Accredited | Highest CTC 70 LPA | Average CTC 6.5 LPA | 400+ Recruiters
BML Munjal University | B.Tec...
Apply
A Hero Group Initiative | Up to 100% Scholarships | Highest CTC 32.99 LPA | Average CTC 8.45 LPA | Accepts JEE Score | Applications Closing Soon!
Amity University-Noida BBA Ad...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amrita University B.Tech 2026
Apply
Recognized as Institute of Eminence by Govt. of India | NAAC ‘A++’ Grade | Upto 75% Scholarships
Amity University-Noida MBA Ad...
Apply
Ranked among top 10 B-Schools in India by multiple publications | Top Recruiters-Google, MicKinsey, Amazon, BCG & many more.
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books