ECONOMICS
BALANCE OF PAYMENTS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Balance of trade account
|
|
|
Current account
|
|
|
Unilateral transfer account
|
|
|
Capital account
|
Detailed explanation-1: -Loans and borrowings by a country from the foreign countries or from the international money market are recorded in the Capital Account of the BOP.
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: -Capital transfers consist of the transfer of ownership of a fixed asset, the forgiveness of a liability, and the transfer of cash that is linked to, or conditional on, the acquisition or disposal of a fixed asset. The transfers made by migrants as they move to a new country are an example of a capital transfer.”
Detailed explanation-4: -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.