Question

According to the IMF's definition, what does the Balance of Payments (BoP) statement show for a given period?

a.

Only transactions in goods and services

b.

Transactions in goods, services, and income between an economy and the rest of the world, changes of ownership, and unrequited transfers

c.

Only changes of ownership in the economy's monetary gold

d.

Only unrequited transfers between an economy and the rest of the world

Posted under IC 89 Management Accounting

Answer: (b).Transactions in goods, services, and income between an economy and the rest of the world, changes of ownership, and unrequited transfers Explanation:The IMF's definition states that the BoP statement shows transactions in goods, services, and income between an economy and the rest of the world, changes of ownership and other changes in the economy's monetary gold, special drawing rights (SDRs), claims and liabilities to the rest of the world, and unrequited transfers and counterpart entries that are needed to balance any entries for the foregoing transactions and changes which are not mutually offsetting.

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Q. According to the IMF's definition, what does the Balance of Payments (BoP) statement show for a given period?
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