A credit in balance of payments indicates

A. Accumulation of bank balances abroad

B. Foreign direct investment received into the country

C. Earning of foreign exchange by the country

D. Earning of foreign exchange or incurring of liability abroad or decrease in asset abroad

Answer: Option C

Solution(By Examveda Team)

A credit in balance of payments indicates earning of foreign exchange by the country. The balance of payments (BOP) is the place where countries record their monetary transactions with the rest of the world.