Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Which of the following account records all the transactions between the residents of the country and the rest of the world causing a change in assets and liabilities of the residents of the country or its government?

 

Options:

Capital account

Current account

Errors and omission account

Autonomous and accommodating accounts

Correct Answer:

Capital account

Explanation:

Capital account of BOP records all the transactions between the residents of the country and the rest of the world which cause a change in assets and liabilities of the residents of the country or its government.