Balance of payment (BOP) data may be important for any of the following reasons
A) BOP data helps to forecast a country's market potential, especially in the short run.
B) The BOP is an important indicator of a country's foreign exchange rate.
C) Changes in a country's BOP may signal a change in controls over payment of dividends and interest.
D) All of the above.

Question

Quizplus · Accepted Answer

BOP data can be used for all of the mentioned reasons. It can help forecast a country's market potential by indicating the demand for its exports and the availability of foreign exchange reserves. The BOP is also an important indicator of a country's foreign exchange rate as surpluses or deficits can affect supply and demand for a country's currency. Changes in a country's BOP can also signal changes in controls over payments of dividends and interest, which can affect foreign investment.

Balance of Payment (BOP) Data May Be Important for Any