ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Capital account balance + capital account balance is not equal to zero
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Capital account balance + capital account is not positive number
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Capital account balance + capital account balance is not negative number
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All of these
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Detailed explanation-1: -A country is said to be having its balance of payment in equilibrium when the sum of its current account and non-reserve capital account equals zero, which means the current account deficit is financed entirely by international borrowings without any movement in the country’s official reserves.
Detailed explanation-2: -The “balance of payment equilibrium” (bpe) is defined as the situation when trading among different countries is such that the trading partners remain debt free from each other over a reasonable number of years. In other words, the value of a country’s imports is equal to the value of its exports.
Detailed explanation-3: -The country is said to be in balance of payments equilibrium when the sum of its current account and its non-reserve capital account equals zero so that the current account balance is financed entirely by international lending.
Detailed explanation-4: -Current account. Financial account. Capital account. Decision-making. Developing trade policies. Establishing fiscal objectives. Implementing growth strategies. Analyzing deficits.