The BOP should always balance.
A)True
B)False

Question

Quizplus · Accepted Answer

The BOP is an accounting identity, which means that it must always balance. This is because the BOP measures the difference between the value of a country's exports and the value of its imports. If the value of exports is greater than the value of imports, then the country has a trade surplus. If the value of imports is greater than the value of exports, then the country has a trade deficit. The BOP also includes other transactions, such as foreign aid and investment, which can affect the overall balance. However, regardless of the specific transactions that are included, the BOP must always balance.

The BOP Should Always Balance