A country's international transactions can be grouped into the following three main types:
A)current account, medium term account, and long term account
B)current account, long term account, and capital account
C)current account, capital account, and reserve account
D)capital account, reserve account, trade account

Question

Quizplus · Accepted Answer

The three main types of a country's international transactions are the current account, which includes transactions related to trade in goods and services, income received from investments, and unilateral transfers; the capital account, which includes transactions related to capital transfers and acquisition or disposal of non-produced, non-financial assets; and the reserve account, which includes transactions related to changes in a country's official reserve holdings. The medium term account and long term account options listed in choice A are not recognized categories in international accounting. Choice B inaccurately conflates the long term and capital accounts, which are distinct categories of international transactions. The trade account listed in choice D is not a recognized category of international transactions.

A Country's International Transactions Can Be Grouped into the Following