In a balance of payments table, the overall balance is found by adding:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → the current account, the capital account and errors and omissions
The overall balance is the current account balance plus the capital account balance plus errors and omissions.
Errors and omissions are the third element of the BoP, so they must be added too. The change in reserves comes after the balance; it is not part of it.
NCERT (2026-27): “Errors and Omissions It is difficult to record all international transactions accurately. Thus, we have a third element of BoP (apart from the current and capital accounts) called errors and omissions which reflects this. Table 6.1 provides a sample of Balance of Payments for India. …”
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