Balance of payment bop

BOP surplus is not when

• current acc balance+ capital acc balance is negative

• current acc balance+ capital acc balance is positive

• current acc > capital acc

• capital acc > current acc

which of the following is not included in the capital account

• crude oil

• capital goods

• portfolio investment

• foreign direct investment

(a)   account transactions lead to future claims

significance of bop

• Helps plan government programmes

• reflects market potential

• help calculate primary deficit

• reflects human capital formation

which of the following is not a component of capital account

• NRI deposits

• short term credit

• banking capital

• grants and donations

find trade balance if export= 9876, import = 4321

• -5555

• not enough information

• 5555

• both a and b

(a)   items may involve the movement of goods across borders.

Accommodating items of bop are below the line

• true

• false

• partially true

• no