Which of the Following Statements About the Balance of Payments

question 62

Multiple Choice

Which of the following statements about the balance of payments is NOT true?

• A) The BOP is the summary statement of all international transactions between one country and all other countries.
• B) The BOP is a flow statement, summarizing all international transactions that occur across the geographic borders over a period of time, typically a year.
• C) Although the BOP must always balance in theory, in practice there are substantial imbalances as a result of statistical errors and misreporting of current account and financial account flows.
• D) All of the above are true.