Question

Consider the following statements about the balance of payments (Bo

  • P : 1. BoP records all transactions between residents of a country and the rest of the world. 2. A current account surplus means a country imports more goods than it exports. 3. BoP always balances as it includes current account, capital account, and errors and omissions. Which of the above statements are correct?
A 1 and 3 only
B 2 and 3 only
C 1 and 2 only
D 1, 2, and 3
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