Q. With reference to the Balance of Payment (BOP), consider the following statements::
1.Only imports and exports are included in the balance of payments
2.It means the sum of all credit entries is greater than the sum of all debit entries
Which of the statements given above is/are incorrect with respect to BOP?
Answer: C
Notes:
Any transaction that causes money to flow into or out of a country is counted in the balance of payments not just export and imports.
The balance of payments is always balanced. That means the sum of all credit entries should match the sum of all debit entries.
Source- Article
