Multiple choice

Borrowings from foreigner's arc known as:

  1. Export of goods

  2. Unrequited receipts

  3. Capital receipts

  4. Current receipts
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Borrowings from foreigners are classified as capital receipts in the balance of payments accounting because they create a liability that must be repaid in the future. Capital receipts include loans, foreign investments, and other borrowing, as opposed to current receipts which are from ongoing transactions like trade.

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