A nation's annual balance of payments statement must always balance because:

Question

Quizplus · Accepted Answer

The balance of payments statement always balances because all international transactions must be settled in one way or another. In other words, every dollar spent on imports must eventually be paid for with an equal dollar earned through exports, investment income, or other international transactions. Therefore, the total value of a nation's exports must be equal to the total value of its imports, plus any investment income or other international payments received.

A Nation's Annual Balance of Payments Statement Must Always Balance