Where is 'borrowings from abroad' recorded in the Balance of Payments Accounts? Give reasons.
CBSE OUTSIDE DELHI - SET 1 2015
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'Borrowings from abroad' is recorded in the 'Capital account' of BOP account because it increases international liability of the country.
It is recorded on the credits side because it brings in foreign exchange into the country.
It is recorded on the credits side because it brings in foreign exchange into the country.
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