The current account balance is defined as

Question

Quizplus · Accepted Answer

The current account balance is a measure of a country's international trade and financial flows, including goods and services, income, and transfers. Therefore, it is calculated as the value of exports - the value of imports + net interest income + net transfers. Option B refers only to exported capital assets and net interest income, while option C refers only to official reserves. Option D only takes into account the balance of trade (the difference between exports and imports) and does not include other factors such as income and transfers. So, option A is the correct answer.

The Current Account Balance Is Defined as