Read the two statements and choose the correct option.
I. The balance of payments is a flow concept.
II. The balance of payments records only transactions made by the government.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

It records transactions over a period, so it is a flow. I is true.
It records transactions by all residents: households, firms and the government. II is false.

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

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

Read the two statements and choose the correct option.I. The balance of payments is a flow concept.II. The balance of payments records only transactions made by the government.