Question : The balance of payments helps in assessing a country's _____________and ______________with other countries.
Option 1: relationships, cooperation
Option 2: trade, investments
Option 3: economic, financial
Option 4: exports, imports
Correct Answer: economic, financial
Solution : The correct answer is (c) economic, financial
The balance of payments provides a systematic record of all economic and financial transactions between a country and the rest of the world. It helps in assessing a country's economic and financial interactions with other countries, including trade in goods and services, income flows, transfers, and financial transactions such as investments, loans, and borrowing. By analyzing the balance of payments, policymakers and economists can gain insights into a country's economic performance, its international financial position, and the effectiveness of its economic policies.
