Balance of payments is made up of?
visible and current items
invisible and capital items
current and capital items
visible and invisible items
Correct answer is C
The balance of payments (BOP) is a statement of all transactions made between people in one country and the rest of the world over a defined period of time. It consists of current and capital items.
Current items consist of the inflow and outflow of goods and services between countries, including all the receipts and payments made with respect to raw materials and manufactured goods. While capital transactions include the purchase and sale of assets (non-financial) like land and properties.