The difference between a country's total payments to other countries and its total receipts from other countries is represented by which of the following?
A) financial surplus
B) financial deficit
C) balance of payments
D) balance of trade

Question

Quizplus · Accepted Answer

The difference between a country's total payments to other countries and its total receipts from other countries is represented by the balance of payments. It includes both the balance of trade (the difference between a country's exports and imports) as well as other financial transactions such as investments, loans, and aid. A financial surplus occurs when a country's receipts exceed its payments, while a financial deficit occurs when a country's payments exceed its receipts.

The Difference Between a Country's Total Payments to Other Countries