A foreign investment
B loans
C NRI remittances
D all
Anurag Pathak Changed status to publish August 26, 2021
Ans – a) and b)
The capital account of BoP records the financial transactions that change the status of financial assets and liabilities of a country towards the rest of the world.
Foreign investment results in an inflow of foreign exchange thus result in a decrease of the
financial assets of a country.
On the other hand, loans also result in an inflow of foreign exchange but result in an
increase fo the financial liabilities towards the rest of the world.
Anurag Pathak Answered question August 26, 2021