A country's ________ is the difference between the value of a country's imports and exports over time.
A) gross national product
B) purchasing power parity
C) current account
D) foreign exchange reserve

Question

A country's ________ is the difference between the value of a country's imports and exports over time. 
A) gross national product
B) purchasing power parity
C) current account
D) foreign exchange reserve

Quizplus · Accepted Answer

A country's current account represents its international trade activities and includes the balance of trade (exports minus imports), as well as income from abroad and unilateral transfers (such as foreign aid or remittances). Gross national product (A) is the total value of goods and services produced by a country and includes domestic and international activities. Purchasing power parity (B) is a measure of the relative value of currencies that takes into account differences in prices between countries. Foreign exchange reserve (D) represents the amount of foreign currency held by a country's central bank and is used to stabilize the domestic currency's value in international markets.

A Country's ________ Is the Difference Between the Value of a Country's