Transactions included in the balance of payments are I. foreign direct investment. II. government deficits. III. imports.

Question

Quizplus · Accepted Answer

The balance of payments includes transactions between a country and the rest of the world, which are divided into three categories: the current account, the financial account, and the capital account. The current account includes transactions related to the import and export of goods and services, while the capital account includes transactions related to financial assets and liabilities. Foreign direct investment is included in the financial account, while government deficits are not typically included in the balance of payments. Therefore, the only option that includes imports (which are part of the current account) and foreign direct investment (which is part of the financial account) is C, I and III only.

Transactions Included in the Balance of Payments Are I