A nation's balance of payments reflects
A)the summary of all trade related transactions that took place within a given period.
B)all the money that was exchanged between the country and all its trading partners within a given period.
C)the value of all the assets that was purchased by foreigners within a given period.
D)the summary of all the transactions that took place between the residents of a country and the rest of the world within a given period.

Question

Quizplus · Accepted Answer

A nation's balance of payments is a record of all the transactions that occurred between the residents of a country and its trading partners in a given period. It includes transactions related to exports, imports, services, and financial flows. Therefore, option D is the correct answer as it describes the definition of the balance of payments. Options A, B, and C are incorrect as they do not provide a comprehensive definition of the balance of payments.

A Nation's Balance of Payments Reflects