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Which of the following is NOT true about the overall balance? a. It is the sum...

Which of the following is NOT true about the overall balance?

a. It is the sum of net income inflows and net capital inflows by the private sector.

b. If a country’s overall balance is positive, the country’s official reserve increases.

c. It summarizes all the private sector’s net inflows of income and capital.

d. It summarizes all the accounts in the balance of payments except errors and omissions.

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Answer #1

Option a & Option c are incorrect.

The Balance of Payments is a summary of all the economic transactions performed by the nation and all its residents, not just by any particular sector like private sector or public sector.

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