The ________ is the difference between money flowing into a country from exports, and money leaving the country for imports, plus money flows coming from other factors such as tourism, foreign aid, military expenditures, and foreign investment.
A) balance of payments
B) balance of trade surplus
C) balance of cash flows
D) balance of trade

Question

Quizplus · Accepted Answer

The balance of payments includes not only the balance of trade (difference between exports and imports) but also other financial flows such as tourism, foreign aid, military expenditures, and foreign investment. Therefore, the correct option is A, balance of payments. B refers only to the balance of trade surplus, which is just one component of the balance of payments. C is not a commonly used term in international economics, and D refers only to the balance of trade, which does not include other financial flows.

The ________ Is the Difference Between Money Flowing into a Country