Question

Which one of the following is included in the invisible items of balance of payment?

• A. Banking
• B. Shipping
• C. Communication
• D. All of these

Hint:

In Balance of Payments, "Invisible" is just another word for services.

Answer 1

The Correct Option is D

The Balance of Payments (BoP) current account is divided into visible trade (trade in goods) and invisible trade (trade in services, income, and transfers). Invisible items are intangible. Banking, shipping, and communication are all services that countries trade. Therefore, they are all included in the invisible items of the BoP.