The distinction between international trade and international money is NOT entirely clear because
A) real developments in the trade accounts do not have monetary implications.
B) the balance of payments includes only real measures.
C) developments caused by purely monetary changes have no real effects.
D) trade models focus on real, or barter relationships.
E) most international trade involves monetary transactions.

Question

Quizplus · Accepted Answer

The distinction between international trade and international money is not entirely clear because most international trade involves monetary transactions, which means that trade activities are closely linked with financial or monetary movements. This interconnection blurs the lines between the purely real (physical goods and services) aspects of trade and the monetary aspects that facilitate these exchanges.

The Distinction Between International Trade and International Money Is NOT