Which of the following statements is true of the balance-of-payments records?
A) The balance-of-payments accounts do not consider income brought in by nonresident citizens of a country.
B) The fact that assets and liabilities balanced in a balance-of-payments statement does not mean that a nation is in a particularly good financial condition.
C) A balance of payments is not a record of the financial condition of a nation.
D) A balance of payments is a good determinant of the financial condition of a nation.
E) A balance-of-payments record is maintained on a single-entry bookkeeping system.

Question

Quizplus · Accepted Answer

A nation's balance-of-payments statement records all financial transactions between its residents and those of the rest of the world during a given period of time-usually one year. The fact that assets and liabilities in a balance-of-payments statement balance does not mean that a nation is in particularly good or poor financial condition. A balance of payments is a record of condition, not a determinant of condition.

Which of the Following Statements Is True of the Balance-Of-Payments