Which of the following statements is INCORRECT?
A) Payments for imports and receipts from exports are recorded in the current account.
B) Foreign investment in the United States and U.S. investment abroad are recorded in the capital and financial account.
C) A change in U.S. official reserves is recorded in the official settlements account.
D) Net interest income is recorded in the official settlements account.

Question

Quizplus · Accepted Answer

Net interest income is actually recorded in the current account, not in the official settlements account. The current account includes transactions in goods, services, primary income, and secondary income, with net interest income falling under primary income. The official settlements account (often part of the broader balance of payments framework) deals with changes in a country's official reserves.

Which of the Following Statements Is INCORRECT