The four main components of the current account are:
A)services, financial assets, unilateral transfers, and debits.
B)net exports, unilateral transfers, services, and domestic bank deposits abroad.
C)government asset holdings abroad, foreign official assets, private bank deposits abroad, and merchandise.
D)unilateral transfers, merchandise, services, and investment income.
E)capital exports, services, merchandise, and royalties.

Question

Quizplus · Accepted Answer

The four main components of the current account are unilateral transfers (such as aid payments), merchandise (exports and imports of goods), services (exports and imports of intangible services such as tourism, consulting, and education), and investment income (income earned by domestic residents from foreign assets and income paid to foreigners who own domestic assets). Option D has all four of these components listed.

The Four Main Components of the Current Account Are