The _______ of a nation measures its net changes in financial assets and liabilities abroad.

Question

Quizplus · Accepted Answer

The capital account measures a country's net changes in financial assets and liabilities abroad, which includes foreign direct investment, portfolio investment, and changes in reserve assets. The current account measures a country's imports and exports of goods and services, while the balance of trade only measures trade in goods (exports minus imports). The terms of trade measure the ratio of export prices to import prices.

The _______ of a Nation Measures Its Net Changes in Financial