ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Invisible balance inflow
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Investment income inflow
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Financial ac inflow
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Transfers inflow
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Detailed explanation-1: -The balance of payments is a system of recording transactions that happen between countries. Any movement of money into, or out of, a country has to be accounted for.
Detailed explanation-2: -Capital account – The record of a country’s international transactions involving purchases or sales of financial and real assets (borrowing, lending, and investments).
Detailed explanation-3: -The balance of payments (BOP) is the record of all international financial transactions made by the residents of a country. There are three main categories of the BOP: the current account, the capital account, and the financial account.
Detailed explanation-4: -Foreign direct investment (FDI) is an ownership stake in a foreign company or project made by an investor, company, or government from another country.