Which of the following is included in a nationʹs current account?
I. the import of services
II. a change of foreign currency holdings
III. net transfers, such as foreign aid payments

Question

Quizplus · Accepted Answer

I. the import of services - This is included in the current account as it is part of the balance of trade in goods and services.
II. a change of foreign currency holdings - This is not included in the current account, but rather in the capital account.
III. net transfers, such as foreign aid payments - This is included in the current account as it represents a transfer of resources from one country to another.

Therefore, only choices B (I and III) are included in a nation's current account.

Which of the Following Is Included in a Nationʹs Current