6 Questions
What is the main focus of a country's balance of payments?
Export and import of goods
Why would a developing country typically have a deficit in its balance of payments?
Because it imports raw materials and machinery for development
What does the current account of a country's balance of payments include?
Income received and paid in the form of interest, profits, and dividends
What is the trade account balance in a country's balance of payments used to determine?
Whether a country enjoys a surplus or deficit on that account
What are unilateral receipts or payments, as mentioned in the text?
Gifts, donations, private remittances etc. received by residents of other countries
What does the balance of trade indicate when exports and imports are exactly equal during a given period?
A balanced trade account
Test your knowledge of balance of payments with this quiz. Explore the systematic records of transactions between countries and their impact on economic development.
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