A) The current account of balance of payments consists of export and import of goods and the capital account consists of export and import of services, borrowings and lendings.
B) The surplus on current account in the balance of payments must be equal to the deficit on capital account and vice versa.
C) If in the actual balance of payments, the credit and debit do not balance, the balance is usually achieved by adding one item 'error and omissions'.
D) The balance of payment of a country must always balance in the accounting sense.
Correct Answer: A
Solution :
[a] The current account of balance of payments consists of export and import of goods and the capital account consists of export and import of services, borrowings and lendings.
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