The represents the difference between the payments and receipts from international transactions in goods and services (plus net foreign- investment income). The represents the difference between payments and receipts from international transactions in assets.

Question

Quizplus · Accepted Answer

The current account balance represents the difference between payments and receipts from international transactions in goods and services (plus net foreign- investment income). The capital account balance represents the difference between payments and receipts from international transactions in assets. Thus, option A is the correct answer. Option B refers to a specific part of the current account, which is the trade balance, and mixes it with the capital account. Option C refers to official financial aid and does not directly relate to international transactions. Option D refers to the flow of capital in and out of a country and does not differentiate between the specific types of transactions. Option E incorrectly refers to the merchandise account instead of the current account.

The Represents the Difference Between the Payments and Receipts from International