Question

In terms of account placement, the Balance of Trade is a part of the ________, whereas the Balance of Payments represents the ________:

Options

• Financial Account; current account only

• Capital Account; entire external account

• Current Account; entire external account

• Current Account; capital account only

Answer 1

The BoT (trade in goods) forms part of the Current Account, while the BoP represents the entire external account, spanning goods, services, transfers, and capital transactions.