The net amount of international reserves that move between governments to finance international transactions is called the ________ balance.

Question

Quizplus · Accepted Answer

The official reserve transactions balance represents the net amount of international reserves that flow between governments to finance international trade and payments. The capital account records capital transfers between countries, while the current account records the flow of goods, services, and income between a country and its trading partners. The trade balance specifically refers to the difference between a country's imports and exports of goods.

The Net Amount of International Reserves That Move Between Governments