ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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exchange rates
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unemployment rate
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interest rates
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inflation rates
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Detailed explanation-1: -The balance of payment is the statement that files all the transactions between the entities, government anatomies, or individuals of one country to another for a given period of time.
Detailed explanation-2: -Balance of payments surplus occurs when a country’s total exports are higher than its imports. This helps to generate capital to fund its domestic productions. With a surplus in its BoP, a country can also lend funds outside its borders. A surplus in BoP can help to boost the short term economic growth of a country.
Detailed explanation-3: -A balance of payments deficit means the nation imports more commodities, capital and services than it exports. It must take from other nations to pay for their imports.
Detailed explanation-4: -There are three components to the current account – the ‘trade balance’, ‘primary income balance’ and ‘secondary income balance’. In economic analysis or commentary, most attention is usually given to the trade balance, which records the difference between the value of our exports and imports of goods and services.