A record of the difference between the holding of foreign assets by domestic residents and domestic assets by foreign residents is known as:
A) financial account
B) current account
C) Bretton Woods system
D) official reserve assets
E) real exchange rate

Question

Quizplus · Accepted Answer

The financial account in the balance of payments records transactions that involve the purchase or sale of assets. Essentially, it reflects the difference between a country's domestic assets purchased by foreigners and the foreign assets purchased by domestic residents.

A Record of the Difference Between the Holding of Foreign