Impact of Economic Transactions on Balance of Payments

The balance of payments (BOP) is a financial statement that summarizes all economic transactions between residents of one country and the rest of the world over a specified period. It consists of two main accounts: the current account and the capital account. Understanding how these accounts function is essential for assessing a country's economic position.

Consider the following scenarios in which a country experiences changes in its balance of payments:

1. A significant increase in imports of consumer goods.

2. Foreign investment inflows into local enterprises.

3. A rise in domestic savings leading to greater foreign investment abroad.

Based on these scenarios, which of the following statements is true regarding their impact on the balance of payments?