Vidyalelo
Management · Q703

International Finance and Treasury

Graduate and Post Graduate · Management · question 703

Q703

Factor proceeds are part of which section of balance of payments

A.
liabilities
B.
current account
Answer
C.
balance of trade
D.
both a & b

Answer: Option B

Solution

Answer: Option B
Solution:
Factor proceeds are part of which section of balance of payments current account. The current account records a nation's transactions with the rest of the world specifically its net trade in goods and services, its net earnings on cross-border investments, and its net transfer payments over a defined period of time, such as a year or a quarter.