Which of the following should not be included in the balance of payments account?
A country's Balance of Payments (BoP) records all economic and financial transactions between residents of the country and non-residents (the rest of the world). Issuing…
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Which of the following should not be included in the balance of payments account?
Answer and explanation
Correct answer A
A country's Balance of Payments (BoP) records all economic and financial transactions between residents of the country and non-residents (the rest of the world). Issuing bonus shares to equity shareholders is a domestic book-entry capitalization of reserves involving no cross-border flow of funds or real resources, so it is not included in the Balance of Payments account.
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UGC NET Management