A record of all transactions between households, firms, and the government of one country and the rest of the world is the

Question

Quizplus · Accepted Answer

The balance of payments is a record of all transactions between a country and the rest of the world, including exports, imports, financial transfers, and investments. It is used to determine a country's overall economic performance in relation to other nations.

Option A (balance of trade) only measures the difference between a country's exports and imports of tangible goods, while option C (International Monetary Fund) is an international organization that provides financial support and technical assistance to member countries, but is not directly related to recording transactions. Option D (government budget) only tracks the inflows and outflows of a government's finances within its own borders, not including international transactions.

A Record of All Transactions Between Households, Firms, and the Government