Question

What does the Balance of Payment (BOP) account measure?

a.

Flow of economic transactions within a country

b.

Flow of international payments and receipts

c.

Flow of domestic payments and receipts

d.

Flow of transactions between government and private entities

Answer: (b).Flow of international payments and receipts Explanation:The Balance of Payment (BOP) account is the summary of the flow of economic transactions between the residents of a country and the rest of the world (ROW) during a given time period. It measures the flow of international payments and receipts.

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Q. What does the Balance of Payment (BOP) account measure?

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