Question:medium
“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth ₹ 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.” The above-mentioned transactions will be recorded on ______ side of ______ account of Balance of Payments of India.
“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth ₹ 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.” The above-mentioned transactions will be recorded on ______ side of ______ account of Balance of Payments of India.
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In BoP, capital account entries reflect financial flows like foreign investments, loans, or asset sales, with outflows recorded as debits.
Updated On: Jan 13, 2026
- Debit, Current
- Credit, Capital
- Credit, Current
- Debit, Capital
Show Solution
The Correct Option is D
Solution and Explanation
The Balance of Payments (BoP) tracks all financial flows between a nation's residents and other countries. When Foreign Institutional Investors (FIIs) net sell, it signifies foreign capital exiting the country as securities are sold, which is registered as a debit in the BoP's capital account.
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