The current account balance is defined as
A) the value of exports - the value of imports.
B) the amount of exported capital assets + net interest income.
C) the value of exports - the value of imports + net interest income + net transfers.
D) the difference between the import and export of official reserves.

Question

Quizplus · Accepted Answer

The current account balance includes the trade balance (exports minus imports), net income from abroad (such as interest and dividends), and net current transfers (such as foreign aid). This makes option C the correct definition.

The Current Account Balance Is Defined as