ECONOMICS
BALANCE OF TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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credit
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debit
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Either A or B
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None of the above
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Detailed explanation-1: -The balance of payments (BOP) is the method by which countries measure all of the international monetary transactions within a certain period. The BOP consists of three main accounts: the current account, the capital account, and the financial account.
Detailed explanation-2: -Conclusion. Balance of payments is an important concept in the economics of a country and various components make up the balance of payments. The balance of payments cannot be zero as a deficit in the current account will be offset by a surplus in the capital account and vice versa.
Detailed explanation-3: -When the foreign exchange is being sold by the reserve bank when there is a deficit, it is known as official reserve sale. The decrease or increase in official reserves is known as the overall balance of payments deficit or surplus.
Detailed explanation-4: -Andre Prenoor, US entrepreneur, invests $50 million to develop a theme park in Malaysia. 3. A Chinese company sells $1 million worth of berets to the US Army.