Question

Comparing their scope, the Balance of Trade is ________ while the Balance of Payments is ________:

Options

• Broad; Narrow

• Narrow; Broad

• Broad; Broad

• Narrow; Narrow

Answer 1

Because the BoT includes only goods while the BoP includes goods, services, transfers, and capital transactions, the BoT has a narrow scope and the BoP has a broad scope.