The balance of payments is a record divided into categories, or accounts, including all of the following categories except
A) merchandise.
B) financial assets.
C) profits.
D) services.
E) investment income.

Question

Quizplus · Accepted Answer

The balance of payments includes accounts for merchandise (trade in goods), services (trade in intangibles such as tourism and intellectual property), investment income (earnings on foreign investments), and financial assets (capital flows such as foreign investment in stocks and bonds). Profits, however, are not a separate category within the balance of payments. They may be included in the investment income account if they are earnings on foreign investments.

The Balance of Payments Is a Record Divided into Categories