The entire BOP of a single country:
A)Is always in disequilibrium
B)Must balance
C)Must grow from year to year
D)Is never accurate
E)Balances goods but not services

Question

Quizplus · Accepted Answer

The balance of payments (BOP) of a single country must balance in the long run. This means that the current account (which includes trade in goods and services, income from investments, and unilateral transfers) must equal the capital and financial account (which includes investment flows and changes in reserves). However, in the short run, the BOP can be in disequilibrium.

The Entire BOP of a Single Country