Which of the following statements is incorrect with respect to the balance of payments?
A)It constitutes a record of transactions between residents within one country.
B)It consists of a current account, a capital account, and an account to record omissions and errors.
C)Transactions that result in a demand for domestic currency are always entered as a credit.
D)It must balance in the aggregate, but separate accounts can show deficits or surpluses.
E)It constitutes a record of a country's trade in goods and services and financial assets.

Question

Quizplus · Accepted Answer

The balance of payments constitutes a record of transactions between residents of one country with residents of other countries, not just within one country.

Which of the Following Statements Is Incorrect with Respect to the Balance