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Question

The items on the capital account of Balance of Payments are:

The correct answer is

Flow variables

Balance-of-payments entries record transactions over a period, so they are flow variables. A stock is measured at a point in time. Changes in external asset or liability stocks can also include revaluation and other nontransaction changes, so they are not identical to the recorded transaction flows.

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Important Questions from Balance of payments (BOP)

  1. Which of the following statements is correct?

  2. Which of the following statements is INCORRECT?

  3. Balance of Trade is measured as:

  4. If there is a balance of payments deficit then in a floating exchange rate system :
  5. Devaluation, will improve the balance of payment deficit, if sum of elasticity of exports and imports of the devaluing country is :
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