The current account balance is equal to
A) net exports + net interest income + net transfers.
B) net exports - net interest income - net transfers.
C) net exports + net interest income - net transfers.
D) net interest income + net transfers - net exports.

Question

Quizplus · Accepted Answer

The current account balance is the sum of net exports (exports minus imports), net income from abroad (including interest and dividends), and net current transfers (such as foreign aid). Therefore, option A correctly represents the components of the current account balance.

The Current Account Balance Is Equal to