Question : The current account includes the balance of trade in goods, balance of trade in _______________and ____________transactions.
Option 1: services, capital
Option 2: transfers, income
Option 3: imports, exports
Option 4: investments, remittances
Correct Answer: services, capital
Solution : The correct answer is (a) services, capital
The current account includes the balance of trade in goods, the balance of trade in services, and transactions related to income and transfers. Specifically, the balance of trade in goods represents the difference between a country's exports and imports of tangible goods. The balance of trade in services reflects the difference between a country's exports and imports of intangible services, such as tourism, transportation, and financial services. Transactions related to income include earnings from investments and remittances, while transfers include unilateral transfers of funds, such as foreign aid or personal remittances.
Question : The capital account of the Balance of Payments includes transactions related to:
Option 1: Imports and exports of goods
Option 2: Income from foreign investments
Option 3: International transfers of funds
Option 4: International borrowing and lending
Question : The current account includes the balance of trade in goods, balance of trade in services, and balance of _______________transactions.
Option 1: capital
Option 2: financial
Option 3: investment
Option 4: current
Question : The current account of the Balance of Payments includes:
Option 1: Trade in goods and services
Option 2: Financial transfers
Option 3: Capital transactions
Option 4: Foreign exchange reserves
Question : A favorable balance of payments occurs when the value of ________________exceeds the value of_______________.
Option 1: imports, exports
Option 2: exports, imports
Option 3: income, transfers
Option 4: services, goods
Question : In the Balance of Payments, the capital account records transactions related to:
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