Question

How does the IMF define economic transactions for the purpose of recording them in the Balance of Payments (BoP)?

a.

Activities involving residents only

b.

Transactions involving at least two parties, either in reality or by implication, and exchanges of something of economic value

c.

Transactions involving non-residents only

d.

Only transactions involving changes of ownership

Answer: (b).Transactions involving at least two parties, either in reality or by implication, and exchanges of something of economic value Explanation:Economic transactions, for the purpose of BoP recording, include all those activities whereby two entities exchange something of economic value and involve at least two parties, either in reality or by implication.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How does the IMF define economic transactions for the purpose of recording them in the Balance of Payments (BoP)?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the significance of the double-entry bookkeeping system in the context of Balance of Payments (BoP) compilation?

Q. Suppose X has a FCNR deposit in USD with SBI, and he transfers it to Bank of India. How is this transaction recorded in the Balance of Payments (BoP)?

Q. What are transfer payments in the context of Balance of Payments (BoP)?

Q. What is the recommended basis for valuing transactions entering the Balance of Payments (BoP) account, according to the IMF manual?

Q. How are both imports and exports valued in the Balance of Payments (BoP) according to the IMF manual?

Q. In the Balance of Payments (BoP) accounting system, how many aspects does every transaction have?

Q. What is the logic behind the double-entry bookkeeping system in the BoP accounting?

Q. How is the balance maintained in the Balance of Payments (BoP) accounting?

Q. How are credit transactions recorded in the BoP accounting?

Q. What is the impact on the BoP account when a country exports goods to another country?

Q. How does the BoP account represent imports in terms of currency flow?

Q. What are the three main components of the Balance of Payments (BOP) account?

Q. What transactions are recorded in the Current Account of the BOP?

Q. Where are transactions resulting in changes in foreign assets and liabilities recorded in the BOP?

Q. What is the difference between the Capital Account and the Reserve Account in the BOP?

Q. What does Merchandise trade in the BOP cover?

Q. How are exports valued in the Merchandise trade in the BOP?

Q. What is the Balance on Merchandise Trade Account in the BOP?

Q. When and where was the International Monetary Fund (IMF) formally created?

Q. What was the primary objective of creating the IMF?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!