Question

    What types of income are included in the current account

    of the Balance of Payments (BoP)?
    A External Assistance Correct Answer Incorrect Answer
    B Profits on Foreign Investments Correct Answer Incorrect Answer
    C Non-resident Deposits Correct Answer Incorrect Answer
    D Portfolio Investments Correct Answer Incorrect Answer

    Solution

    The current account of the BoP includes compensation of employees and investment income, where the latter comprises dividends, profits from foreign investments, and payments related to interest, reflecting the earnings on external investments.

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