Question

What are the two broad categories into which transactions in the Balance of Payment (BOP) account are classified?

a.

Goods and Services

b.

Imports and Exports

c.

Current Account and Capital Account

d.

Investments and Assets

Answer: (c).Current Account and Capital Account Explanation:Various transactions like exports/imports of goods and services, payment of dividend/interest, investments in assets, etc., are recorded in the BoP account, and these transactions are broadly classified into the current account and capital account.

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Q. What are the two broad categories into which transactions in the Balance of Payment (BOP) account are classified?

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