Question : The balance of payments is a record of:
Option 1: Government revenue and expenditure
Option 2: Imports and exports of goods only
Option 3: Financial transactions between residents and non-residents
Option 4: Gross domestic product (GDP) and economic growth
Answer (1)
10th Jan, 2024
Correct Answer: Financial transactions between residents and non-residents
Solution : The correct answer is (c) Financial transactions between residents and non-residents.
The balance of payments is a comprehensive record of all economic transactions between residents of a country and non-residents over a specific period. It captures financial flows, such as the exchange of goods, services, income, and financial assets, between domestic and foreign entities.
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