Question

what are the items included in BOP?

Answer 1

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Items to be included in BOP:-

(I)visible items:-physical goods or merchandise that can be seen or touch

(ii)Invisible items:-services (e.g Banking,insurance, transportation etc)

(iii) Investment income:-It includes investment income received by residents and investment income paid to non-residents.

e.g-rent, interest, dividends etc

(iv)Unilateral transfer:-one way transfer such as gift,donation, remittances etc

(V)capital transactions:-Those transactions which causes a change in asset or liability

e.g-Borrowings,sale of assets etc.

HOPE IT HELPS YOU..

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Thankyou:)

Answer 2

The BoP consists of three main components—current account, capital account, and financial account. As mentioned earlier, the BoP should be zero. The current account must balance with the combined capital and financial accounts.