Country A had the following transactions with country B.

	Ksh. (Billion)
	A	B
Exports of goods	10	12
Export services	3.7	0.9
Interest, Dividends, Royalties	1.2	0.5
Direct investments (FDI)	0.7	0.2
Foreign Portfolio Investments (FPI)	1.1	0.5
Loans from IMF	1.0	-

Required:

Explain the difference between Balance of Payments (BOP) and Terms of Trade. 

Prepare the current account of country A. 

Prepare the capital account of country A. 

Prepare the Balance of Payments accounts (balancing the differences with errors and omissions). 

Based on the calculations above, comment on country A’s BOP account balances.