+2 votes
in Class 12 by kratos

Balance of payments is always in equilibrium why?

1 Answer

+4 votes
by kratos
 
Best answer

Balance of payments of a country is always balanced because entries in BOP account are done on the basis of credit (or receipt) and debit (or payment) in dual entry system. After filling all the entries in the record, total credit and debit become equal to each other because both the sides are equal in transaction and recorded in opposite direction that is why, BOP is always in equilibrium.

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