Question on: JAMB Commerce - 2024
The components of a balance of payments account are
A
capital, current and fixed deposit
B
current, capital and monetary movement
C
capital, savings and fixed deposit
D
current, savings and monetary movement
Ask EduPadi AI for a detailed answer
Correct Option: B
The components of the balance of payments account are:* Current Account: Records transactions related to the import and export of goods and services, as well as unilateral transfers (gifts, grants, etc.).* Capital Account: Records transactions involving the purchase and sale of assets, such as foreign direct investment, portfolio investment, and changes in foreign assets held by domestic residents.* Monetary Movement (or Financial Account): This account shows changes in a country's holdings of gold and foreign currency and the impact of these changes on the balance of payments.
Add your answer
Please share this, thanks!
No responses