The overall U.S. balance of payments _____

Question

Quizplus · Accepted Answer

The overall U.S. balance of payments shows how deficits in one account (such as the merchandise trade balance) are exactly offset by surpluses in other accounts (such as services, investment income, and unilateral transfers). It does not necessarily show a deficit or surplus on its own. Therefore, option A and B are incorrect. Option C is incorrect because the balance of payments is not just the merchandise trade balance, but includes other accounts as well. Option D is incorrect because exports minus imports would only represent the trade balance, not the overall balance of payments.

The Overall U.S. Balance of Payments _____