Question: The Balance Of Payment Comprises?
a. Official settlement of accounts
b. A current account of goods and services
c. A capital account of financial assets
d. All of the above
Show Answer
All of the above
The balance of payments (BOP) comprises two main accounts: the current account and the capital and financial account. The current account includes transactions in goods, services, income, and current transfers. The capital and financial account records capital transfers and transactions in financial assets and liabilities. The BOP provides a comprehensive record of a country’s economic transactions with the rest of the world, helping to understand its economic position and international economic relationships.