ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Dividend payments by Rolls Royce to Irish investors
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Money sent by UK residents to their relatives abroad
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Expenditure by the British Government in maintaining foreign embassies overseas
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The expenditure of Japanese tourists on holiday in Britain
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Detailed explanation-1: -The balance of payments is a statistical statement that summarises transactions between residents and non-residents during a period. It consists of the current account, capital account and financial account.
Detailed explanation-2: -The UK generally imports more than it exports meaning that it runs a trade deficit. A deficit of £230 billion on trade in goods was offset by a surplus of £145 billion on trade in services in 2022. The overall trade deficit was £85 billion in 2022.
Detailed explanation-3: -United Kingdom Current Account Balance United Kingdom Current Account recorded a deficit of 22.8 USD bn in Sep 2022, compared with a deficit of 44.1 USD bn in the previous quarter. UK Current Account Balance: USD mn data is updated quarterly, available from Mar 1957 to Sep 2022, with an averaged value of-1.5 USD bn.
Detailed explanation-4: -Funds entering a country from a foreign source are booked as credit and recorded in the BOP. Outflows from a country are recorded as debits in the BOP.