ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Balance of Payments on the Current Account; Current Account
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Merchandise Trade Balance; Trade Balance
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Balance of Payments on the Financial Account; Financial Account
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Balance of Payments on Goods and Services; Goods and Services Account
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Detailed explanation-1: -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-2: -It is defined as the sum of the balance of trade (goods and services exports minus imports), net income from abroad, and net current transfers.
Detailed explanation-3: -The current account balance of payments is a record of a country’s international transactions with the rest of the world. The current account includes all the transactions (other than those in financial items) that involve economic values and occur between resident and non-resident entities.
Detailed explanation-4: -The correct answer is Balance of Payment. Balance of Payment (BOP) of a country can be defined as a systematic statement of all economic transactions of a country with the rest of the world during a specific period usually one year. The balance of payments includes both the current account and capital account.