ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The balance of payments includes both the current account and capital account. The current account includes a nation’s net trade in goods and services, its net earnings on cross-border investments, and its net transfer payments.

Detailed explanation-2: -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-3: -The components of the balance of payments are the current record/account, the capital record/account, and the financial record/account.

Detailed explanation-4: -The balance of payments includes both the current account and capital account.

Detailed explanation-5: -Current account. Financial account. Capital account. Decision-making. Developing trade policies. Establishing fiscal objectives. Implementing growth strategies. Analyzing deficits.