ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Buying firms
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Net Income Flows
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Net Transfers
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Balance of trade in goods and services
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Detailed explanation-1: -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. The current account of BOP is either positive meaning Surplus or Negative meaning Deficit.
Detailed explanation-2: -Answer and Explanation: The correct answer is : C. US Capital inflow and outflow.
Detailed explanation-3: -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-4: -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.