Which of the following is a yearly summary of all the economic transactions between residents of one country and residents of the rest of the world?

Question

Quizplus · Accepted Answer

The balance of payments is a yearly summary of all the economic transactions between residents of one country and residents of the rest of the world. It includes the current account (trade in goods and services), the capital account (investment flows), and the financial account (transactions in financial assets). The balance of trade (A) only covers trade in goods, while the balance of the capital account (B) only covers investment flows. The balance of the current account (C) only covers trade in goods and services, and does not include investment flows or financial transactions.

Which of the Following Is a Yearly Summary of All