Study the following figure carefully and choose the correct alternative to fill in the blank:
Balance of Payments Account
Study the following figure carefully and choose the correct alternative to fill in the blank:
Balance of Payments Account
Show Hint
- Investments
- Trade of Services
- External Borrowings
- External Assistance
The Correct Option is B
Solution and Explanation
The Balance of Payments (BoP) Current Account comprises trade in goods (merchandise), trade in services, and transfer payments. Option (B), "Trade of services," accurately completes the flowchart. Options (A) Investments, (C) external borrowings, and (D) external assistance are components of the Capital Account, not the Current Account.
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