Question

The record of country's transactions in goods, services and assets with the rest of the world is its–
(A) current account
(B) balance of trade
(C) capital account
(D) balance of payment

Answer 1

balance of payment transaction

Answer 2

(D) balance of payment

Explanation:

• BOP is defined as the country's transaction that has happened within a period of 1 year to the rest of the world.
• The transactions can be between individuals or entities or institutions.
• A capital account is usually a general ledger account. This records the capital contributed and also the retained earnings from it.
• A current account refers to an account created by a bank for carrying out a huge number of transactions at a regular interval.
• Balance of trade refers to the deficit between exports and imports of any country.

#SPJ3