Question

30. How is the state of balance of payments affects, when government is directly involved in foreign trade? (a) Balance in BoP improves (b) Balance in BoP deteriorates (c) Depends upon trade balance (d) None of the above​

Answer 1

The balance of payments (BOP), also known as the balance of international payments, is a statement of all transactions made between entities in one country and the rest of the world over a defined period, such as a quarter or a year. It summarizes all transactions that a country's individuals, companies, and government bodies complete with individuals, companies, and government bodies outside the country.

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