Which of the following statement is NOT correct in the context of Balance of Payments?
Answer & explanation
Correct answer: option 3
The correct answer is option 3: Both 1 and 2
Balance of Payments (BOP) : It is a statistical statement summarising 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.