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    Question

    Which of the following defines the concept of Balance of

    Payments most appropriately?
    A It records the transactions in goods, services, and assets between residents of a country with the rest of the world for a specified time period. Correct Answer Incorrect Answer
    B It records the transactions in goods, services, and assets between citizens of a country with the rest of the world for a specified time period. Correct Answer Incorrect Answer
    C It records exports and imports in goods and services and transfer payments. Correct Answer Incorrect Answer
    D It records the net export levels of goods and services and transfer payments. Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    It records the transactions in goods, services and assets between residents of a country with the rest of the world for a specified time period typically a year There are two main accounts in the BoP – the current account and the capital account. The current account records exports and imports in goods and services and transfer payments.

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