The trade balance represents the difference between a country's exports and imports of goods, which is a major portion of the current account balance, but not the only component. The current account also includes services, income, and current transfers.

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The Trade Balance Is

Question 56

Multiple Choice

The trade balance is

A) by definition, identical to the current account balance.
B) is a major portion, but not the only component, of the current account balance.
C) almost invariably larger than the financial account balance.
D) the largest component of the financial account.

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