For any given country, the balance of trade and the balance of payments must both be both positive or both be negative.

Question

Quizplus · Accepted Answer

The balance of trade refers to the difference between a country's exports and imports of goods, while the balance of payments includes not only goods but also services, investment flows, and other financial transactions. Therefore, it is possible for a country to have a positive balance of trade but a negative balance of payments, or vice versa.

For Any Given Country, the Balance of Trade and the Balance