Question

An account that records the trading of foreign assets and liabilities during the year by a country is known as ______ 

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 trading of foreign assets and liabilities during the year by a country is known as 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 between a country's citizens and the rest of the world that result in a change in the country's residents' or government's assets or liabilities.