The BOP Must Be in Balance, but the Current Account

question 21

True/False

The BOP must be in balance, but the current account need not be.

---

Definitions:

Government Business Organization

An entity directly operated by the government that engages in commercial activities, often with a public service or economic objective.

Non-Business Government Organization

An entity that operates within the government framework but is not focused on commercial or business activities, often tasked with policy implementation or service provision.

Distinguish

Differentiate or identify differences between two or more things.

Derivatives

Financial instruments whose value is derived from the value of an underlying asset, index, or interest rate.