BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The balance-of-payments accounts do not consider income brought in by non-resident citizens of a country.
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The fact that assets and liabilities balance does not essentially mean that a nation is in a particularly good financial condition.
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A balance of payments is not a record of condition.
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A balance of payments is a determinant of condition.
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A balance of payments records all the financial transactions of a country since 1980.
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Detailed explanation-1: -Statement 3 is correct: The Balance of Payments (BoP) includes both the current account and capital account, in the capital account there is the nation’s imports and exports of capital and foreign aid.
Detailed explanation-2: -The balance of payments summarises the economic transactions of an economy with the rest of the world. These transactions include exports and imports of goods, services and financial assets, along with transfer payments (like foreign aid).
Detailed explanation-3: -The balance of payment is the statement that files all the transactions between the entities, government anatomies, or individuals of one country to another for a given period of time.
Detailed explanation-4: -Basic balance is an economic measure for the balance of payments that combines the current account and capital account balances. The current account shows the net amount of a country’s income if it is in surplus, or spending if it is in deficit. The capital account records the net change in ownership of foreign assets.