Every ________ can be considered to have a corresponding flow of foreign money associated with it,and this flow of foreign money is recorded as a ________.

Question

Quizplus · Accepted Answer

Every international transaction involving goods and services can be considered to have a corresponding flow of foreign money associated with it, which is recorded in the current account of the balance of payments. This current account includes visible trade (exports and imports of goods), invisible trade (exports and imports of services), and unilateral transfers (gifts, grants, and donations). Credit transactions refer to receipts or inflows of funds, while debit transactions refer to payments or outflows of funds. Capital account transactions involve the purchase or sale of assets and liabilities, such as foreign investments, loans, and reserve assets.

Every ________ Can Be Considered to Have a Corresponding Flow