Balance of Payment Transactions are made by
All of the above
- Government bodies
The balance of Payment (BoP) of a country is defined as the record of all economic transactions between the residents fo a country and the rest of the world in a particular period. These transactions are made by individuals, firms and government bodies.
Two types of international transaction are recorded in the balance of payments:
- Transactions that involve the export or import of goods or services and, therefore, enter directly into the current account.
- Transactions that involve the purchase or sale of assets. An asset is any one of the forms in which wealth can be held, such as money stocks, factories, government debt, land, or rare postage stamps.