Balance of payment consists of ________ and _______ items.

A. Credit and loss
B. visible and non-visible
C. valid and invalid
D. income and expenditure

Correct Answer:

Option B – visible and non-visible

Explanation

The balance of payments is a summary of all monetary transactions between a country and rest of the world. These transactions are made by individuals, firms and government bodies. Thus the balance of payments includes all external visible and non-visible transactions of a country.