"When it is difficult to record all international transactions accurately, then a third element of BOP (apart from the current and capital accounts) is used." Identify the third reflector of Balance of Payments (BOP).
"When it is difficult to record all international transactions accurately, then a third element of BOP (apart from the current and capital accounts) is used." Identify the third reflector of Balance of Payments (BOP).
Solution
✅ Correct Option: 1
Since it is difficult to record all international transactions accurately, the balance of payments includes a third element called errors and omissions, which reflects the discrepancies that remain after recording the current and capital accounts.
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