Multiple Choice QuestionChoose the correct definition for a transaction balance.Multiple choice question.A transaction balance is the difference between credit extended to suppliers and credit used by suppliers.A transaction balance is cash kept on hand by a firm to pay normal daily expenses such as employee wages and bills such as utility payments.A transaction balance is an arrangement by which a bank agrees to lend a specified amount of money to a firm upon request.A transaction balance is an account where funds are saved in order to pay off long-term liabilities such as bond issues.

Balance of Payments The balance of payments is a statement that contains the transactions made by residents of a particular country with the rest of the world over a specific time period. It is also known as the balance of international payments and is often abbreviated as BOP. It summarizes all payments and receipts by firms, individuals and the government. The transactions can be factor payments and transfer payments. Components of Balance of Payments The BOP comprises two accounts: Current and Capital.

Define balance

Which of the following is NOT a major category included in the balance of payments?Multiple choice question.Capital accountGovernment debt accountCurrent accountOfficial settlement account

Outline the structure of the two main accounts of the balance of payments.

The record of a country's transactions in goods, services, and assets with the rest of the world is itsGroup of answer choicesbalance of payments.balance of trade.capital account.current account.