The balance of payments as applied to a course in international finance may be defined as:
A) the amount still owed by an exporting firm after making an initial down payment.
B) the amount still owed by governments to the International Monetary Fund.
C) the measurement of all international economic transactions between the residents of a country and foreign residents.
D) the amount of a country's merchandise trade deficit or surplus.

Question

Quizplus · Accepted Answer

The balance of payments is a record of all international economic transactions between the residents of a country and foreign residents. It includes not only trade in goods and services but also financial transactions such as investment inflows and outflows, transfers of capital and payments of interest and dividends. Option A refers to payments related to exports, while option B relates to payments made to the International Monetary Fund, and option D refers only to merchandise trade deficits or surpluses.

The Balance of Payments as Applied to a Course in International