Question

The difference between money coming into a country from exports and money leaving a country due to imports, plus money flows from other factors, is known as the:
a. balance of trade
b. balance of payments
c. free trade
d. trade deficit

Answer 1

Answer:

Balance of payments (BOP)

Explanation:

The balance of payments is referred to details of the transaction that held between two entities either in the same country or outside the country of a particular time period.

when the transaction was done for another country, there is a deduction of credit from the balance of payment and when transaction was done for the same country then credit is added to the BOP