Which of the following statement (s) is/are correct?
Statement 1: BOP of a country summarizes all the internal-external transactions (receipts and payments) on current and capital account in which a country is involved over a period of time.
Statement 2: BOP is a statistical statement.
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: Only Statement 2 is correct.
Statement 1: BOP of a country summarizes all the internal-external transactions (receipts and payments) on current and capital account in which a country is involved over a period of time. This is false. summarizes all the external transactions (receipts and payments) on current and capital account in which a country is involved over a period of time.
Statement 2: BOP is a statistical statement. This is true.
"Balance of Payments (BOP): It is a statistical statement summarizing all the external transactions (receipts and payments) on current and capital account in which a country is involved over a period of time, say, a year. As the BOP shows the total assets and obligations over a time-period, it always balances."