An example of an item included in the current account is
A) the profits made by a South Korean company operating a plant in the United States.
B) the stock of Google held by a South Korean investor.
C) a South Korean company's deposits in Citibank.
D) a bond sold by Tesla Motors to a South Korean investor.

Question

Quizplus · Accepted Answer

The profits made by a South Korean company operating a plant in the United States would be included in the current account as it is a transaction involving international trade in goods and services. The other options do not involve a direct exchange of goods or services between countries and thus would not be included in the current account.

An Example of an Item Included in the Current Account