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Question Tw0 Country A had the following transactions with country B. Required: a) Explain the difference between Balance of Payments (BOP) and Terms of Trade.

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Question Tw0 Country A had the following transactions with country B. Required: a) Explain the difference between Balance of Payments (BOP) and Terms of Trade. (2 Marks) b) Prepare the current account of country A. (2 Marks) c) Prepare the capital account of country A. (2 Marks) d) Prepare the Balance of Payments accounts (balancing the differences with errors and omissions). Marks) e) Based on the calculations above, comment on country A's BOP account balances. (2 Marks)

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