The items on the capital account of Balance of Payments are:
Balance-of-payments accounts record transactions during a period, so the capital-account items are Flow variables. Stock variables belong to a balance sheet/international…
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The items on the capital account of Balance of Payments are:
Answer and explanation
Correct answer A
Balance-of-payments accounts record transactions during a period, so the capital-account items are Flow variables. Stock variables belong to a balance sheet/international investment position. Changes in stock magnitudes can reflect transactions but also valuation and other changes, so that phrase is not identical to recorded BOP flows. Both Stock and Flow variables incorrectly treats the account as including stock levels.
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UGC NET Economics