Unlike the balance of payments,the balance of international indebtedness indicates the international:
A) Investment position of a country at a given moment in time
B) Investment position of a country over a one-year period
C) Trade position of a country at a given moment in time
D) Trade position of a country over a one-year period

Question

Quizplus · Accepted Answer

The balance of international indebtedness refers to the net amount of a country's foreign debt (both public and private) at a particular point in time. It reflects the investment position of a country, indicating whether it is a net creditor or debtor in the global economy. On the other hand, the balance of payments measures a country's transactions with the rest of the world over a period of time and includes both trade and financial transactions.

Unlike the Balance of Payments,the Balance of International Indebtedness Indicates