The total flow of money into a country less the total flow of money out of the country over some period of time is called the country's
A) trade deficit.
B) balance of payments.
C) unfavorable balance.
D) balance of trade.
E) favorable balance.

Question

Quizplus · Accepted Answer

The balance of payments is a measure of all monetary transactions between a country and the rest of the world over a certain period of time, including imports, exports, investments, and foreign aid. It is the net result of all inflows and outflows of money, and includes both the balance of trade (exports minus imports) and other international financial transactions. A trade deficit or surplus refers specifically to the difference between a country's exports and imports of goods only, while the balance of payments is a broader measure of a country's economic engagement with the rest of the world. "Unfavorable balance" and "favorable balance" are not commonly used terms in economics, and are not accurate descriptions of the balance of payments.

The Total Flow of Money into a Country Less the Total