BOT consists of:*Tick the answer that IS NOT CORRECT1 pointremittancesmoney that is generated by import and exportGDPforeign aid
Question
BOT consists of:
Tick the answer that IS NOT CORRECT
1 point
- remittances
- money that is generated by import and export
- GDP
- foreign aid
Solution
The answer that is NOT CORRECT is GDP.
Here's why:
-
Remittances: These are funds transferred from migrants to their home country. They are part of the balance of payments (BOT).
-
Money that is generated by import and export: This is the core of the BOT, which records all transactions between a country and the rest of the world.
-
GDP (Gross Domestic Product): This is the total value of goods produced and services provided in a country during one year. It is not a part of the BOT.
-
Foreign aid: This is money, resources or services that one country voluntarily transfers to another. It is part of the BOT.
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