A) Repayment of loan taken from IMF will be recorded on debit side.
B) Surplus in BoP refers to a state where debit side exceeds credit side.
C) Increase in investment from rest of the world decreases the exchange rate.
D) Devaluation of current items improves trade balance of domestic country.
Correct Answer: B
Solution :
Surplus is the situation of excess of receipts over expenditures. In BoP, it happens when the balance of credit side exceeds the balance of debit side.
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