ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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+ $1 billion
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-$4 billion
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-$7 billion
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-$15 billion
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Detailed explanation-1: -The current account balance of payments is a record of a country’s international transactions with the rest of the world. The current account includes all the transactions (other than those in financial items) that involve economic values and occur between resident and non-resident entities.
Detailed explanation-2: -The balance of payments divides transactions into two broad accounts: the current account. the combined capital and financial account.
Detailed explanation-3: -The balance of payments (BOP) is the place where countries record their monetary transactions with the rest of the world. Examining the current account balance of a country’s BOP can provide a good idea of its economic activity.
Detailed explanation-4: -Current Account Formula = (X-M) + NI + NT In this formula, X-M stands for trade balance. For the trade balance to be positive, a country needs to have more exports than imports. The exports and imports include both goods and services produced in the country.