The total flow of money into a country less the total flow of money out of the country over some period of time is called the country's
A) trade deficit.
B) balance of payments.
C) unfavourable balance.
D) balance of trade.
E) favourable balance.

Question

Quizplus · Accepted Answer

The balance of payments is a measure of all economic transactions between a country and the rest of the world. It includes the balance of trade (exports minus imports of goods and services) as well as other flows of money, such as flows of money for investment purposes or payments for foreign aid. A positive balance of payments indicates a country is receiving more money from foreign sources than it is spending abroad, while a negative balance of payments indicates the opposite.

The Total Flow of Money into a Country Less the Total