The balance of payments ____________.
A) is always zero
B) is always one
C) is positive when the nation has a trade surplus
D) is negative when the nation has a trade deficit
E) is positive when the nation has a trade deficit

Question

Quizplus · Accepted Answer

The balance of payments is always zero because it is an accounting record of all monetary transactions between a country and the rest of the world, where all debits and credits must balance out.

The Balance of Payments ____________