The balance of payments is:
A)the difference between the dollar value of exports and the dollar value of imports.
B)the same as the merchandise account.
C)a summary statement of all international transactions of one country with the rest of the world.
D)a summary statement of the foreign assets held by U.S.citizens.
E)a record of the amount of U.S.dollars held abroad.

Question

Quizplus · Accepted Answer

The balance of payments is a summary statement of all international transactions of one country with the rest of the world, including both goods and services, financial transactions, and transfers of money. It represents the overall flow of payments between a country and its trading partners, and includes information on trade, income, and capital flows. The other choices (A, B, D, and E) only represent specific aspects of the balance of payments.

The Balance of Payments Is