ECONOMICS

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: -Explanation: The capital account of BOP records all those transactions, between the residents of a country and the rest of the world, which cause a change in the assets or liabilities of the residents of the country or its government. It is related to claims and liabilities of financial nature.

Detailed explanation-3: -Current account of Balance of Payments account records only exports and imports of goods and services.

Detailed explanation-4: -The term balance of payments refers to all the international transactions made between the people, businesses, and government of one country and any of the other countries in the world. The accounts in which these transactions are recorded are called the current account, the capital account, and the financial account.