LIVE Course for free

Rated by 1 million+ students
Get app now
0 votes
in General by (30.0k points)
closed by
What is the full form of BOP?
1. Balance of Payment
2. Balance of Process
3. Balance of Processes
4. Balance of Products
5. None of the above

1 Answer

0 votes
by (54.3k points)
selected by
Best answer
Correct Answer - Option 1 : Balance of Payment

The correct answer is Balance of Payment.

  • The balance of payments (BoP) records the transactions in goods, services and assets between residents of a country with the rest of the world for a specified time period typically a year
  •  There are two main accounts in the BoP – the current account and the capital account.
  • The current account records exports and imports in goods and services and transfer payments. 
  • When exports exceed imports, there is a trade surplus and when imports exceed exports there is a trade deficit. 
  • The balance of exports and imports of goods is referred to as the trade balance.
  • Adding trade in services and net transfers to the trade balance, we get the current account balance.
  • The capital account records all international purchases and sales of assets such as money, stocks, bonds, etc.
  • In any transaction resulting in a payment to foreigners is entered as a debit and is given a negative sign.
  • Any transaction resulting in a receipt from foreigners is entered as a credit and is given a positive sign.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.