ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An Italian tourist paying for a night in a London hotel would appear on the UK balance of payments:
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In the current account
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In the capital/financial accounts
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -The Balance of Payments (BOP) is a summary of the economic transactions of a country with the rest of the world for a specific period. It serves as an accounting statement on the economic dealings between residents of the country and non-residents.
Detailed explanation-2: -Current account of Balance of Payments account records only exports and imports of goods and services.
Detailed explanation-3: -Answer and Explanation: A current account records the transaction of trade of goods and services taking place with the foreign country.
Detailed explanation-4: -What occurs in the balance of payments account when international payments are greater than receipts? a boycott.
There is 1 question to complete.