Question : The balance of trade is a part of which account in the Balance of Payments?
Option 1: Current Account
Option 2: Capital Account
Option 3: Financial Account
Option 4: Reserve Account
Correct Answer: Current Account
Solution : The correct answer is a) Current Account. The balance of trade is a part of the Current Account in the Balance of Payments. The balance of trade specifically refers to the difference between the value of a country's exports and the value of its imports of goods and services. It is a key component of the Current Account, which records the trade in goods, services, income from investments, and unilateral transfers.
Question : Which of the following is not a component of the balance of payments?
Question : Which account in the Balance of Payments records international borrowing and lending?
Question : Which account in the Balance of Payments represents changes in a country's official reserves?
Question : Which account in the Balance of Payments includes transactions related to foreign direct investment?
Question : Which account in the Balance of Payments represents the net change in a country's foreign assets and liabilities?
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