Question

How does the BoP account represent imports in terms of currency flow?

a.

Credit entry

b.

Debit entry

c.

No impact

d.

Both credit and debit entries

Posted under IC 89 Management Accounting

Answer: (b).Debit entry Explanation:Imports increase the supply of the domestic currency, leading to a debit entry in the BoP account as it represents a use of foreign currency.

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Q. How does the BoP account represent imports in terms of currency flow?
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