The balance of payments:

Question

Quizplus · Accepted Answer

The balance of payments is the accounting of trade in goods and capital, including exports and imports, as well as financial flows such as investments and loans. Option A is describing capital account, which is a part of balance of payments but not the whole picture. Option C is incorrect as trade deficit means negative balance in the balance of payments. Similarly, option D is incorrect as trade surplus means positive balance in the balance of payments.

The Balance of Payments