A nation's balance of trade is a major component of its balance of payments.

Question

Quizplus · Accepted Answer

Balance of trade refers to the difference between the value of a country's exports and imports of goods and services, while the balance of payments measures all economic transactions between a country and the rest of the world, including trade in goods and services, investment flows, and transfers. Therefore, a nation's balance of trade is a subset of its balance of payments.

A Nation's Balance of Trade Is a Major Component of Its