The balance of payments records
A)only international trade, (exports and imports).
B)only cross-border investments (FDI and portfolio investment).
C)not only international trade, (exports and imports) but also cross-border investments.
D)none of the above

Question

Quizplus · Accepted Answer

The balance of payments records not only international trade, but also cross-border investments. It includes the current account, which records exports and imports of goods and services, as well as the capital account, which records cross-border investment flows such as foreign direct investment and portfolio investment. Therefore, option C is the best choice.

The Balance of Payments Records