Q134
The balance of payments always has a zero balance. This is caused by.
A.
the working of the foreign exchange market
B.
by including errors and omissions
C.
the system of double entry bookkeeping
AnswerD.
by including reserves and related items
Answer: Option C
Solution
Answer: Option C
Solution:
The balance of payments always has a zero balance. This is caused by the system of double entry bookkeeping. Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts.