Question

An account that records the export and import of merchandise goods and unilateral transfers are done during the year by a nation is ______

Options

• Current account of BOP

• Capital account of BOP

• Both current account of BOP and capital account of BOP

• None of the above

Answer 1

An account that records the export and import of merchandise goods and unilateral transfers are done during the year by a nation is the capital account of BOP

Explanation:

The Capital Account is an account that tracks a country's trading of international assets and liabilities over the course of a year. In other words, it keeps track of all transactions involving citizens of a country and the rest of the globe that results in a change in the people or government's assets or liabilities.