The ________ category of the BOP current account is predominantly current income associated with investments that were made in previous periods.
A)goods trade
B)services trade
C)income
D)current transfers
E)investments

Question

Quizplus · Accepted Answer

The income category of the BOP current account refers to the receipts and payments of income earned by individuals, firms, and government entities on their foreign investments. This category includes dividends, interest, and profits earned by domestic investors who own foreign assets, as well as the income earned by foreign investors who own domestic assets. This category is not related to the current trade of goods or services but rather to the income earned on past foreign investments. Therefore, option C is the correct answer.

The ________ Category of the BOP Current Account Is Predominantly