Question

Economic Activity. What are the two main types of economic activity measured by a country's BOP?

Answer 1

Balance of payment (BOP) is account which records the transactions of the country with the other countries in the world. It records all transactions of the individual, companies and government bodies of the country with the individual, companies and government bodies of the rest of the world.

The two main types of activity measure by the BOP of the country are imports and exports. When the individual, companies or government bodies of one country purchase any good or services from any other country then it is known as imports. When the individual, companies or government bodies of one country sells any good or services to any other country then it is known as exports.