Multiple choice

The Balance of Payments statement is divided into two major accounts. They are

  1. Saving Account and Current Account

  2. Recurring Deposit Account and Current Account

  3. Current Account and Capital Account

  4. Saving Account and Recurring Deposit Account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Balance of Payments (BoP) is divided into Current Account and Capital Account. The Current Account records trade in goods/services and income flows, while the Capital Account records capital transfers and investments. It is not about bank savings or recurring deposits.

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