| Column I | Column II | ||
| A. | Export of software to France | (i) | Debit side of current account |
| B. | Import of machinery from China | (ii) | Capital account of balance of payments |
| C. | Remittances to relative staying abroad | (iii) | Debit side of current account of balance of payments |
| D. | Investment by Apple phones firm in India | (iv) | Credit side of current account of balance of payments |
A) A-(i)
B) B-(ii)
C) C-(iii)
D) D-(iv)
Correct Answer: C
Solution :
As the remittances are paid, so it will be recorded on the debit side owing to the outflow of currency. Also, this transaction is not impacting the assets or liabilities of the country.
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