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What is meant by bop

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What is meant by bop

Posted by Piyush Kumar Sethi 2 years, 1 month ago

CBSE > Class 12 > Economics

1 answers

Suman Babu 2 years ago

Balance of Payments

It represents the net balance of foreign exchange inflows and outflows.

It includes all current account and capital account transactions.

BOP= NET CASH FLOWS FROM CURRENT ACCOUNT TRANSACTIONS - NET CASH FLOWS FROM CAPITAL ACCOUNT TRANSACTIONS

Current account transactions includes all the net foreign exchange from trade in goods and services and transfer payments.

Capital account transactions includes external borrowings, external assistance, foreign direct investment, investment in capital assets, foreign portfolio investments.

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