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Management · Q724

International Finance and Treasury

Graduate and Post Graduate · Management · question 724

Q724

Current Account in BOP characterize summary of stream of funds between particular country and all other country due to

A.
sale of assets
B.
purchase of goods and services
Answer
C.
liabilities of long term
D.
liabilities of short term

Answer: Option B

Solution

Answer: Option B
Solution:
Current Account in BOP characterize summary of stream of funds between particular country and all other country due to purchase of goods and services. The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and transfer payments. The main components of the current account are: Trade in goods (visible balance) Trade in services (invisible balance), e.g. insurance and services.