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State whether the following transactions...

State whether the following transactions will be recorded on the debit side or credit side of BOP.
i) Loan from World Bank to cover deficit of BOP.
ii) Indian government repays loan taken from World Bank.
iii) Purchase of shares of Reilance by an American resident.
iv) Export of coffee to Japan.
v) Import of machines from USA.

Text Solution

Verified by Experts

Transactions relating to inflow of foreign exchange will be recorded on the credit side and outflows of foreign exchange on the debit side in balance of payment.
Debit side (ii), (v), Credit side, (i), (iii), (iv).
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