GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The difference between a country’s balance of payments and its balance of international indebtedness
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reflects statistical discrepancies
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is equal to official reserve transactions
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occurs because of foreign exchange fluctuations
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reflects the difference between flow and stock concepts
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Explanation:
Detailed explanation-1: -Balance of Payments is a ‘FLOW’ concept. It is an accounting statement showing economic transactions between residents of a country and rest of the world in a given “PERIOD OF TIME".
Detailed explanation-2: -The balance of international indebtedness indicates the international investment position of a country at one moment in time. The balance of payments indicates all of the international monetary transactions of a country over a one year period.
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