Which of the following represents the total amount of money that flows into and out of a country?
A) the balance of trade
B) the balance of payments
C) the federal deficit
D) the balance of exchange

Question

Quizplus · Accepted Answer

The balance of payments represents the total amount of money that flows into and out of a country. It includes all transactions between individuals, businesses, and governments in one country with those in other countries. This includes trade in goods and services, investments, and transfers of money. The balance of payments gives insight into a country's economic relationships with other countries and can affect its currency exchange rates.

A) The balance of trade only represents the difference in value between a country's imports and exports of physical goods. 
C) The federal deficit only represents the difference between a government's spending and its revenue in a given year. 
D) The balance of exchange is not a commonly used term in economics.

Which of the Following Represents the Total Amount of Money