ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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balance of payments accounting system
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international accounting standards
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gold standard procedure
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ISO 9000 system
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Detailed explanation-1: -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-2: -International flows are recorded in the accounts as transactions (balance of payments) and other changes in financial assets and liabilities account.
Detailed explanation-3: -The Balance of Payments (BOP) is a summary of the economic transactions of a country with the rest of the world for a specific period. It serves as an accounting statement on the economic dealings between residents of the country and non-residents.
Detailed explanation-4: -The capital account records all international purchases and sales of assets such as money, stocks, bonds, etc. It also includes foreign investments and loans.