Question

is the net value of exports and imports of goods and services and the net capital flow in a year.

• A. Balance of payments
• B. Balance of trade
• C. Balance on account
• D. Balance of exchange

Answer 1

The correct option is A Balance of payments

Balance of payments refers to the net value of exports and imports of goods and services and the net capital flow in a year in a country. In other words, it represents the record of all economic transactions of a country with foreign countries during a given period of time. Balance of payments helps governments across the world to frame trade policies that would influence their overall growth.