The ________ balance includes purchases and sales of financial assets to and from citizens and companies of other countries.

Question

Quizplus · Accepted Answer

The current account of the balance of payments tracks the trade in goods and services, income received from abroad (such as remittances from foreign workers or interest earned on foreign investments), and transfers (such as government aid or donations). The capital account tracks the net change in ownership of assets, including foreign investments in the domestic market and domestic investments in foreign markets. The investment account is not typically used in the balance of payments terminology.

The ________ Balance Includes Purchases and Sales of Financial Assets