Which one of the following "balances" in a balance-of-payments account has incorporated all private short-term asset changes before arriving at the measure of "balance?"
A) merchandise trade balance
B) balance on current account
C) balance on goods and services
D) official reserve transactions balance

Question

Quizplus · Accepted Answer

The official reserve transactions balance includes all private short-term asset changes before arriving at the measure of "balance." It reflects the changes in a country's official reserves, which are affected by the balance of payments and thus incorporate adjustments for short-term private asset flows.

Which One of the Following "Balances" in a Balance-Of-Payments Account