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Question : Which account in the Balance of Payments represents changes in a country's official reserves?

Option 1: Current Account

Option 2: Capital Account

Option 3: Financial Account

Option 4: Reserve Account


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Reserve Account


Solution : The correct answer is (d) Reserve Account

The Reserve Account, also known as the Official Reserve Account or the Balance of Payments Adjustment Account, tracks the changes in a country's official reserves, including its foreign exchange reserves. It records transactions related to the acquisition or disposal of official reserve assets, such as foreign currencies, gold, Special Drawing Rights (SDRs), and reserve position in the International Monetary Fund (IMF).

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