Question

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

a.

It reduces the number of recorded transactions

b.

It ensures that transactions are recorded systematically and consistently

c.

It is not necessary for BoP compilation

d.

It only applies to transactions between residents and non-residents

Answer: (b).It ensures that transactions are recorded systematically and consistently Explanation:One of the principles to be followed by countries in compiling their BoP data is the adoption of the double-entry bookkeeping system, which ensures that transactions are recorded systematically and consistently.

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

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