Question
Economics Question on Balance of payments (BOP)
How will the purchase of Rafael planes by India from France be recorded in the balance of payments account?
A
Credited to the current account
B
Debited to the current account
C
Credited to the capital account
D
Debited to the capital account
Answer
Debited to the current account
Explanation
Solution
The purchase of Rafael planes, which are goods, will be debited to the current account as part of imports.