If the central bank of India buys foreign exchange reserves in the foreign exchange market, this transaction in its balance of payments will be recorded as O credit in the income part of the current account. O credit in the financial account. O debit in the financial account. O debit in the capital account.

If the central bank of India buys foreign exchange reserves in the foreign exchange market, this transaction in its balance of payments will be recorded as O credit in the income part of the current account. O credit in the financial account. O debit in the financial account. O debit in the capital account.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 18SCQ: How did large trade deficits hurt the East Asian countries in the mid 1980s? (Recall that trade...

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