Option 1 -> Borrowings from abroad are capital transactions recorded in the Capital Account.
Option 2 -> Investment to abroad involves capital flows and is recorded in the Capital Account.
Option 3 -> Changes in Foreign Exchange reserves are recorded in the Capital Account (Official Reserve Account).
Option 4 -> Factor income receipts (interest, dividends, profits, wages) from abroad are recorded in the Current Account.
Hence, Option 4: Factor Income receipt from abroad -> The Current Account of Balance of Payment records all transactions related to trade in goods and services, income receipts and payments, and unilateral transfers. Factor income includes interest, dividends, profits, and wages received from abroad for factors of production (land, labor, capital, entrepreneurship). This forms part of the 'Income' sub-account within the Current Account, as it represents earnings from providing factor services to foreign countries rather than capital movements. -> correct