BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Current account
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Changes in the foreign exchange
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Errors and omissions
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All of these
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Detailed explanation-1: -It takes into consideration the total imports and exports of goods and the total imports and exports of services. Countries then subtract the sum of imports from the sum of the exports.
Detailed explanation-2: -The correct answer is Balance of trade . The difference between the value of a country’s exports and the value of its imports for a certain period is known as the balance of trade (BOT). The main component of a country’s balance of payments is the balance of trade (BOP).
Detailed explanation-3: -The balance of payments (BOP) transactions consist of imports and exports of goods, services, and capital, as well as transfer payments, such as foreign aid and remittances.
Detailed explanation-4: -There are three components of the balance of payment viz current account, capital account, and financial account. The total of the current account must balance with the total of capital and financial accounts in ideal situations.
Detailed explanation-5: -The balance of payments (BOP) is the method by which countries measure all of the international monetary transactions within a certain period. The BOP consists of three main accounts: the current account, the capital account, and the financial account.