ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit entry in Current a/c (Services)
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A debit entry in Current a/c (Goods)
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Credit entry in Capital a/c
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Credit entry in Current a/c (Goods)
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Detailed explanation-1: -Outflows from a country are recorded as debits in the BOP. For example, say Japan exports 100 cars to the U.S. Japan books the export of the 100 cars as a debit in the BOP, while the U.S. books the imports as a credit in the BOP.
Detailed explanation-2: -An export is marked as a credit (money coming in), and an import is noted as a debit (money going out).
Detailed explanation-3: -International accounts overview The current account balance (seasonally adjusted current price) for December quarter 2022 was a surplus of $14.1b. The current account balance increased $13.4b from the revised September quarter 2022 surplus of $0.8b.
Detailed explanation-4: -Any time an item (good, service, or asset) is exported from a country, the value of that item is recorded as a credit entry on the balance of payments. Any time an item is imported into a country, the value of that item is recorded as a debit entry on the balance of payments.