The current account

Question

The current account

Quizplus · Accepted Answer

The current account measures the balance of trade in goods and services, along with income flows, such as interest payments paid to and received from the rest of the world. Therefore, option A is the correct choice. Option B is incorrect as it shows imports minus exports, which does not take into account income flows. Option C is also incorrect as it fails to consider income flows, and Option D is also incorrect as the current account is not a part of GDP, but rather a part of the balance of payments.

The Current Account