ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes
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No
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Either A or B
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None of the above
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Detailed explanation-1: -Balance of Payments is a ‘FLOW’ concept. It is an accounting statement showing economic transactions between residents of a country and rest of the world in a given “PERIOD OF TIME". Was this answer helpful?
Detailed explanation-2: -The balance of payments (BOP) statistics describe the external stability of the economy in terms of both real and financial transactions and is part of the system of national accounts. The balance of payments is comprised of current, capital and financial accounts.
Detailed explanation-3: -In positive psychology, a flow state, also known colloquially as being in the zone, is the mental state in which a person performing some activity is fully immersed in a feeling of energized focus, full involvement, and enjoyment in the process of the activity.
Detailed explanation-4: -BOP is a flow concept as it is measured over (during) a period of time. Since BOP is measured over a time interval, it can be said that they have an element of time attached to them. Similarly, current account is also a flow variable. 2.
Detailed explanation-5: -The balance of payments (BOP) is the method by which countries measure all of the international monetary transactions within a certain period. The BOP consists of three main accounts: the current account, the capital account, and the financial account.