ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Dividends paid to foreign residents owning US shares
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The sale of a hotel chain by an overseas conglomerate
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A payment to farmers for wheat sold overseas
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None of the above
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Detailed explanation-1: -There are three components to the current account – the ‘trade balance’, ‘primary income balance’ and ‘secondary income balance’. In economic analysis or commentary, most attention is usually given to the trade balance, which records the difference between the value of our exports and imports of goods and services.
Detailed explanation-2: -Detailed Solution. Current Account of Balance of payments does not include Investments. Current Account of Balance of payment is the sum of Balance of Trade, NetFactor income & Net Transfer payment.
Detailed explanation-3: -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.
Detailed explanation-4: -The nation’s current account is its imports, exports, net income, asset income, and direct transfers.