Which of the following accounts within the current account of the United States' balance of payments includes financial gains earned on U.S.assets held abroad?
A) income receipts account
B) income payments account
C) merchandise account
D) services account

Question

Quizplus · Accepted Answer

The income receipts account includes the financial gains earned on U.S. assets held abroad, such as interest, dividends, and profits. It is a sub-account within the current account of the balance of payments. The income payments account, on the other hand, records the payments made by U.S. residents to foreign investors who hold assets in the United States. The merchandise account records the trade in goods (exports and imports), while the services account records trade in services (such as transportation, tourism, and intellectual property).

Which of the Following Accounts Within the Current Account of the United