8 min read
This study guide covers the Balance of Payments (BOP), focusing on the current account (goods, services, income flows), capital account (investment flows), and the role of official reserves. It explains how these accounts interact, emphasizing the principle that the current and capital account balances sum to zero. Examples and practice questions illustrate how different transactions impact the BOP and the flow of currency between countries.
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Question 1 of 8
Alright, let's start with an easy one! 😃 The Balance of Payments (BOP) is like a financial diary for a country. Which of the following are the TWO main sections of this diary?
Income Statement and Balance Sheet
Current Account and Capital Account
Revenue Account and Expense Account
Assets Account and Liabilities Account