The current account balance includes international purchases and sales of goods and services, cross-border interest and dividend payments, and cross-border gifts to and from both private individuals and governments.It is approximately the same as net exports.

Question

Quizplus · Accepted Answer

The current account balance is a measure of a country's net exports, as it includes international purchases and sales of goods and services, cross-border interest and dividend payments, and cross-border gifts. Therefore, it is approximately the same as net exports.

The Current Account Balance Includes International Purchases and Sales of Goods