Which component of balance of payments includes transactions without a counterproductive exchange?

The balance of payments is a financial statement that summarizes a country's economic transactions with the rest of the world over a specific period. Among its components, the net secondary income is unique in that it records transactions that do not involve a reciprocal exchange of goods, services, or capital.

Net secondary income includes transfers such as remittances, foreign aid, and gifts. These transactions represent a one-way flow of resources; for example, when a person living abroad sends money home to family members, that transaction enriches the receiver without an equivalent exchange from them to the sender.

Other components, such as the capital account, reserve assets, and the current account, typically involve transactions where something of value is exchanged directly, such as the sale of goods (current account), investments (capital account), or adjustments of currency reserves (reserve assets). This distinguishes net secondary income as it captures the essence of economic support and assistance without requiring a return of equivalent value. Thus, it clearly represents the category of transactions that occur without a counterproductive exchange.