The balance of payments of a country includes:

Official transfers of foreign currency

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Smuggling transactions

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Loans and aid

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Both a and c

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Solution

The correct option is D
Both a and c

The BOP includes both official transfers of currency and loans and aid.

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Similar questions

What is meant by 'official reserve transactions'? Discuss their importance in the Balance of Payments.

(a) Balance of payment always balances. Explain.

(b) When the supply of foreign currency rises, the price of foreign currency falls. Justify the statement.

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