The balance of payments is

a record of exports and imports of goods onlyCorrect answerYour answera record of all transactions between residents and the rest of the worldCorrect answerYour answerthe government's budget for foreign affairsCorrect answerYour answerthe amount of foreign currency held by banksCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

It covers goods, services, income, transfers and capital flows, usually for a year.

Worth noting

Goods alone are the balance of trade, which is only one part of the BoP.

Concept: Meaning of BoP
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsThe BoP account

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Ten questions from Balance of Payments, at your own pace.

Practise this chapter →

Ten questions from Balance of Payments, at your own pace.

Practise this chapter All 53 questions in Balance of Payments Revise the notes for Balance of Payments

The balance of payments is

Explanation