ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Financial ac outflow
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Investment income inflow
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Investment income outflow
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Visible balance outflow
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Detailed explanation-1: -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.
Detailed explanation-2: -The current account consists of the visible and invisible imports and exports of the country (such as purchase of goods from abroad and sale of services abroad) as well as unilateral transfers and income receipts and payments (such as worker remittances from abroad).
Detailed explanation-3: -There are three main categories of the BOP: the current account, the capital account, and the financial account. The current account is used to mark the inflow and outflow of goods and services into a country. The capital account is where all international capital transfers are recorded.
Detailed explanation-4: -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).