The part of the balance of payments account that records the amount of foreign currency the government buys or sells is the:
A) current account.
B) capital account.
C) official reserves account.
D) balance of trade.

Question

Quizplus · Accepted Answer

The official reserves account is the part of the balance of payments that records transactions involving the purchase or sale of foreign currency by the government. It is used to stabilize the value of the home country's currency.

The Part of the Balance of Payments Account That Records