Question : Which of the following statements is true about the financial account of the BoP?

Option 1: It measures the inflows and outflows of financial assets and liabilities.

Option 2: It only covers short-term capital flows.

Option 3: It excludes foreign direct investment.

Option 4: It includes only government-to-government transactions.

Question : A country's balance of payments can be in equilibrium when:

Option 1: Its exports equal its imports

Option 2: Its capital inflows equal its capital outflows

Option 3: Its current account balance is zero

Option 4: All of the above

Question : The balance of trade is a part of which account in the Balance of Payments?

Option 1: Current Account

Option 2: Capital Account

Option 3: Financial Account

Option 4: Reserve Account

Question : Which of the following is not a component of the balance of payments?

Option 1: Current account

Option 2: Capital account

Option 3: financial account

Option 4: Trade account

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