ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The current account records of export and import in goods and services and stocks and bonds.

Detailed explanation-2: -Balance of trade is the largest component of a country’s balance of payments. Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad. Credit items include exports, foreign spending in the domestic economy and foreign investments in the domestic economy.

Detailed explanation-3: -Transactions in goods and services are recorded in the current account of the balance of payments. Financial transactions are recorded in the capital and financial account of the balance of payments.

Detailed explanation-4: -The balance of payments (BOP) transactions consist of imports and exports of goods, services, and capital, as well as transfer payments, such as foreign aid and remittances. A country’s balance of payments and its net international investment position together constitute its international accounts.