ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A record of foreign remittances to a country
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A record of all of a country’s exports and imports
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A record of the financial capital inflows and outflows in a country
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A record of a bank’s assets and liabilities
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A record of all international transactions
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Detailed explanation-1: -The balance of payments (BOP), also known as the balance of international payments, is a statement of all transactions made between entities in one country and the rest of the world over a defined period, such as a quarter or a year.
Detailed explanation-2: -c) Financial Account (BOP item FA) The Financial account covers all transactions associated with changes of ownership in the foreign financial assets and liabilities of an economy.
Detailed explanation-3: -Answer and Explanation: The answer is c). The two accounts in the balance of payment system are the current account and capital account.
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).