The record of a country's transactions in goods, services and assets with the rest of the world is its:
A)current account.
B)financial account.
C)balance of payments.
D)balance of trade.

Question

Quizplus · Accepted Answer

The balance of payments is the record of all economic transactions between a country and the rest of the world, including its current account (exports and imports of goods and services), financial account (capital flows), and other transactions such as foreign aid and remittances. The balance of trade (D) only covers the trade of goods and services, while the current account (A) only covers the exchange of goods and services. The financial account (B) is a component of the balance of payments, but it does not cover all economic transactions.

The Record of a Country's Transactions in Goods, Services and Assets