A country's current account represents:

Question

Quizplus · Accepted Answer

The current account of a country measures the net flow of goods and services between that country and the rest of the world. This includes trade in goods, trade in services, income flows, and transfers. Option A is referring to the concept of external debt. Option B is a bit misleading as it only refers to transactions, whereas the current account goes beyond just transactions. Option C is incorrect as it only refers to imports, whereas the current account includes both imports and exports.

A Country's Current Account Represents