Which of the following is true regarding balance-of-payments records?
A) The fact that assets and liabilities balance means a nation is in particularly good financial condition.
B) The fact that assets and liabilities balance does not mean a nation is in particularly poor financial condition.
C) A balance of payments is not a record of condition.
D) A balance of payments is a determinant of condition.
E) A balance of payments reflects all the financial transactions that occurred in the country.

Question

Quizplus · Accepted Answer

The fact that assets and liabilities balance does not mean a nation is in particularly good or poor financial condition. A balance of payments is a record of condition, not a determinant of condition. Each of the nation's financial transactions with other countries is reflected in its balance of payments.

Which of the Following Is True Regarding Balance-Of-Payments Records