ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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current account
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financial account
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official reserves
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None of the above
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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: -A country’s balance of payments is represented by its current account, capital account, and financial account. The current account records the flow of goods and services in and out of a country (imports and exports). The capital account measures the capital transfers between U.S. residents and foreign residents.
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. 2.
Detailed explanation-4: -The balance of payments summarises all the financial transactions made between the residents of a country and the rest of the world over a certain period. The balance of payments has three components: the current account, the capital account, and the financial account.