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BOP is comprised of the following 5 subaccounts. [ A ] Current account [ B ] Capital Account [ C ] Financial Account [ D
BOP is comprised of the following subaccounts.
A Current account
B Capital Account
C Financial Account
D Net Errors and Omissions
E Reserves and Related Items
Which of the following statement is True?
Group of answer choices
BOP imbalance BOP deficit or surplus refers to the overall balanceABCD from private sector.
Financial Account must balance.
BOP does not necessarily balance, ie sum of ABC DE can be positive or negative in large numbers.
The current account must balance, ie cash inflows should be equal to cash outflows from current account transactions.
Approximately, current account deficit is cancelled out by the sum of capital surplus or vice versa.
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