The current account balance consists of
A)the trade balance plus the services balance.
B)net exports of goods and services, minus net unilateral transfers.
C)net exports of goods and services, plus net income from abroad, plus net unilateral transfers.
D)net exports of goods and services, plus net income from abroad, plus net unilateral transfers, minus the financial account balance.

Question

Quizplus · Accepted Answer

The current account balance includes the balance of trade in goods and services, net income from abroad, and net unilateral transfers. Therefore, option C is the correct answer. Option A only includes the trade balance and services balance, while option B includes only net exports and unilateral transfers. Option D adds the financial account balance, which is not a part of the current account.

The Current Account Balance Consists of