Nakato, a South Asian country, exported goods worth $500 million and imported goods worth $400 million in the last fiscal year. The country also made foreign investments worth $300 million and provided foreign aid worth $100 million in disaster relief. Besides this, the country took a loan of $5 billion from the World Bank. This flow of money into and out of Nakato is measured by _____.

Question

Quizplus · Accepted Answer

The flow of money into and out of a country including exports, imports, foreign investments, foreign aid, and loans is measured by the balance of payments. Therefore, the correct option is D. The balance of trade only considers the value of exports and imports, and opportunity cost relates to the cost of choosing one option over another. Articles of organization are related to the formation and documents of a business entity.

Nakato, a South Asian Country, Exported Goods Worth $500 Million