Question

Match the given criteria with their corresponding entries in the BoP.

• A. Capital account
• B. Positive entry
• C. Negative entry
• D. Current account

Answer 1

1. All exports are positive entries or credit items in the BoP.
2. All imports are debit items or negative entries in the BoP.
3. The current account records exports and imports of goods and services, as well as unilateral transfers.
4. The capital account records purchase and sale transactions of foreign assets and liabilities during a particular year.