Discussion
What are transfers recorded in the current account of the BOP statement that include pension, remittances, gifts, etc. for which no specific services are rendered, called?
Answer: C
Transfers in the current account of the balance of payments for which no service is rendered in return, such as pensions, remittances and gifts, are called unilateral transfers, since they flow in one direction and have no matching payment. Invisible trade means trade in services, bilateral transfers are not a standard head, and barter is an exchange of goods for goods. The answer is unilateral transfers, option C. Unilateral transfers are recorded in the current account because they are income flows between residents and non residents, although no good or service moves.
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