Which of the following is included in a nation's current account?
I. the import of services
II. a change of foreign currency holdings
III. net transfers, such as foreign aid payments
A) I and III
B) I and II
C) II and III
D) III only

Question

Quizplus · Accepted Answer

I and III are included in a nation's current account. The import of services affects the balance of trade, and net transfers, such as foreign aid payments, are part of the current transfers component. A change of foreign currency holdings is related to the capital account, not the current account.

Which of the Following Is Included in a Nation's Current