Which of the following group of accounts make up the balance of payments?
Answer Details
The correct answer is "Capital account; current account and monetary movement account". The balance of payments is a record of all the economic transactions between the residents of a country and the rest of the world over a given period of time. It has two main components: the current account and the capital account, and the monetary movement account is sometimes also included. The current account records trade in goods and services, income flows, and unilateral transfers, while the capital account records capital flows such as foreign direct investment and portfolio investment. The monetary movement account records changes in a country's monetary reserves. Therefore, the group of accounts that make up the balance of payments are the capital account, current account, and monetary movement account.