What shows international transactions that involve currently produced goods and services?

Question

Quizplus · Accepted Answer

The current account of the balance of payments shows the transactions involving the trade of currently produced goods and services between nations. It includes exports and imports of goods and services, as well as income earned from investments and transfers between countries.

Option B, Balance of payments, is not the best choice as it includes both the current account and the capital account, which deals with long-term financial transactions.

Option C, Trade balance, only shows the difference between a country's exports and imports of goods, and does not include services.

Option D, Capital account, deals with long-term financial transactions, such as foreign investments, loans, and real estate purchases, and does not show transactions involving currently produced goods and services.

What Shows International Transactions That Involve Currently Produced Goods and Services