ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit entry in Secondary Income Account
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Credit entry in Primary Income Account
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Credit Entry in the Financial Account
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This transaction would not be recorded in the BoP
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Detailed explanation-1: -The term balance of payments refers to all the international transactions made between the people, businesses, and government of one country and any of the other countries in the world. The accounts in which these transactions are recorded are called the current account, the capital account, and the financial account.
Detailed explanation-2: -Foreign investments are recorded in the capital account of balance of payments.
Detailed explanation-3: -There are three main categories of the BOP: the current account, the capital account, and the financial account. The current account is used to mark the inflow and outflow of goods and services into a country. The capital account is where all international capital transfers are recorded.
Detailed explanation-4: -The current account consists of the visible and invisible imports and exports of the country (such as purchase of goods from abroad and sale of services abroad) as well as unilateral transfers and income receipts and payments (such as worker remittances from abroad).