Nakato, a South Asian country, exported goods worth $500 million and imported goods worth $400 million in the last fiscal year. The country also made foreign investments worth $300 million and provided foreign aid worth $100 million in disaster relief. Besides this, the country took a loan of $5 billion from the World Bank. This flow of money into and out of Nakato is measured by _____.

Question

Quizplus · Accepted Answer

The balance of payments measures all economic transactions between a country and the rest of the world, including trade, investments, aid, and loans.

Nakato, a South Asian Country, Exported Goods Worth $500 Million