A nation's balance of trade on goods is equal to its exports of goods less its imports of:

Question

Quizplus · Accepted Answer

The balance of trade on goods represents the difference between a nation's exports of goods and its imports of goods. Therefore, the correct answer is (A) goods as it directly relates to the definition of the balance of trade on goods. Choice (B) capital and choice (C) financial assets represent different types of transactions, which are not included in the balance of trade on goods. Choice (D) official reserves refers to a nation's holdings of foreign currencies, gold, and other assets, which would not be included in the balance of trade on goods.

A Nation's Balance of Trade on Goods Is Equal to Its