The balance of payments is
A) the difference between the dollar value of exports and the dollar value of imports.
B) the same as the sum of the merchandise and services accounts.
C) a record of a country's trade in goods, services, and financial assets with the rest of the world.
D) a summary statement of the merchandise, services, and unilateral transfers accounts.
E) a record of the amount of U.S. dollars held abroad.

Question

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The balance of payments is a record of a country's trade in goods, services, and financial assets with the rest of the world. It includes the merchandise account (exports and imports of goods), the services account (exports and imports of services), and the capital account (investment flows and financial transfers). The balance of payments is often used as an indicator of a country's economic health and competitiveness in international trade.

The Balance of Payments Is