Question

Balance of payment account includes all of the following, except ____________.

• A. capital account
• B. current account
• C. human resource accounts
• D. official settlements account

Answer 1

Answer: (C)

human resource accounts

The balance of payments account comprises of the current account and the capital account. The current account consists of the visible and invisible imports and exports of the country as well as unilateral transfers and income receipts and payments. The capital account includes the capital receipts and capital payments such as portfolio investments. It may also maintain an official reserve account to run either a fixed exchange rate regime or a managed float regime. It accounts the country's transactions with the rest of the world.