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Question

If Balance of Payment is always balanced, it means ____

A Import of goods and exports of goods are balanced Correct Answer Incorrect Answer
B Import and export of goods and services are balanced Correct Answer Incorrect Answer
C Current account surplus or deficit is balanced by the deficit or surplus of capital account Correct Answer Incorrect Answer
D Current account surplus is equal to capital account surplus Correct Answer Incorrect Answer
E All of the above Correct Answer Incorrect Answer

Solution

The balance of payment is the ‘systematic record of economic transactions of the residents of a country with the rest of the world during a given period of time’. It comprises of Current, capital and financial accounts. In accounting terms, any surplus or deficit in one account is balanced by a deficit or surplus I the other. Concept covered in live classes and videos

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