Which of the following is an item in the U.S. current account?

Question

Quizplus · Accepted Answer

The current account includes the balance of trade (goods and services exports minus imports), net income from abroad (such as profits and dividends from foreign investments), and net transfer payments (such as foreign aid and remittances from abroad). Therefore, net investment income (choice A) is an item in the U.S. current account. The changes in foreign private assets in the U.S. (choice B) and U.S. private assets abroad (choice C) are part of the financial account, not the current account. The change in foreign government assets in the United States (choice D) is not an account in the U.S. balance of payments.

Which of the Following Is an Item in the U