A country's balance of payments on financial account is the:

Question

Quizplus · Accepted Answer

The balance of payments on financial account is the difference between a country's sale of assets to foreigners and its purchases of assets from foreigners. It includes transactions such as foreign direct investment, portfolio investment, and changes in reserve assets. Option A and B refer to the balance of payments on current account, which is the difference between a country's exports and imports of goods and services. Option D is incorrect, as the merchandise trade balance only reflects the difference between a country's exports and imports of goods.

A Country's Balance of Payments on Financial Account Is The