ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Export and import of goods
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Non-factor and factor income
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Current transfer
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All of these
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Detailed explanation-1: -Current account of Balance of Payments account records only exports and imports of goods and services.
Detailed explanation-2: -The current account records imports and exports, as well as transfer payments.
Detailed explanation-3: -Current account records receipts and payments of transactions relating to visible items (goods), invisible items (services), unilateral transfers and income.
Detailed explanation-4: -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-5: -The Four Current Account Components. The current account can be divided into four components: trade, net income, direct transfers of capital, and asset income.