Question

The balance on the current account has which two components?

Options

• Current Account and Capital Account

• Balance of Trade (BOT) and Balance on Invisibles

• Visible items and the Financial Account

• Factor Income and Unilateral Transfers

Answer 1

The overall balance on the current account is split into two components: the Balance of Trade (BOT), which covers goods, and the Balance on Invisibles, which covers services, factor income, and unilateral transfers.