Reylons Inc., a private company based in the United States of America, buys 1500 acres of public land in India to set up one of its manufacturing units. In this case, the sum of money received by the Indian government in exchange for the land will be reflected in the country's _____.

Question

Quizplus · Accepted Answer

The sum of money received by the Indian government in exchange for the land will be reflected in the country's capital account, as it involves the sale of a real asset to a foreign entity, which is a part of capital transactions.