Question
Economics Question on Balance of payments (BOP)
How will the export of machinery be recorded in the balance of payment account of an economy?
A
Current account, debit side
B
Capital account, debit side
C
Current account, credit side
D
Capital account, credit side
Answer
Current account, credit side
Explanation
Solution
Exports are recorded on the credit side of the current account, as they represent an inflow of foreign currency.