The balance of payments of a country is a systematic record of
[UPSC Civil Services Exam – 2013 Prelims]
(a) All import and export transactions of a country during a given period of time, normally a year
(b) Goods exported from a country during a year
(c) Economic transaction between the government of one country to another
(d) Capital movements from one country to another
Answer: (a)
Explanation:
- The balance of payments (BOP) of a country is the record of all economic transactions between the residents of a country and the rest of the world in a particular period (over a quarter of a year or more commonly over a year).
- Balance of Payment (BoP) of a country can be defined as a systematic statement of all economic transactions of a country with the rest of the world during a specific period usually one year.
- It indicates whether the country has a surplus or a deficit in trade.
- When exports exceed imports, there is a trade surplus and when imports exceed exports there is a trade deficit.
- Hence option 1 is correct.
