A. the working of the foreign exchange market
B. by including errors and omissions
C. the system of double entry bookkeeping
D. by including reserves and related items
✅ The correct answer is option C.
The balance of payments always has a zero balance. This is caused by the system of double entry bookkeeping. Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts.
The balance of payments always has a zero balance. This is caused by the system of double entry bookkeeping. Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts.