Question

Which of the following records the flow of foreign exchange from all international transactions over a period of time?

• A. Current Account
• B. Official Reserves Account
• C. Balance of trade
• D. Balance of Payments

Hint:

BOP = Current Account + Capital Account + Financial Account; shows total foreign exchange flow.

Answer 1

The Correct Option is D

Step 1: Identify definitions.
- Balance of Payments (BOP) records all international transactions (goods, services, capital, transfers) over time