________ indicates whether a country is a net borrower from or lender to the rest of the world.
A)The basic balance
B)The liquidity balance
C)The capital account
D)The current account

Question

Quizplus · Accepted Answer

The current account indicates a country's net borrowing or lending from the rest of the world by measuring the balance of trade in goods and services, net transfer payments, and investment income flows. This is in contrast to the capital account, which measures the flows of investment into and out of a country. The basic balance is a broader measure of a country's overall net financial position, while the liquidity balance measures the availability of cash and other liquid assets to meet short-term obligations.

________ Indicates Whether a Country Is a Net Borrower from or Lender