Correct Answer: Import of services

Solution : The correct answer is (b) Import of services.

The transaction that would be recorded as a debit entry in the Balance of Payments is Import of services.

In the Balance of Payments, a debit entry represents an outflow of foreign exchange or a decrease in a specific account.

Import of services transaction involves an outflow of foreign exchange as the country is paying for services received from abroad. Therefore, it would be recorded as a debit entry in the Balance of Payments.