The balance of payments in ______________ shows trade in currently produced goods and services, as well as unilateral transfers of merchandise.
A) current account balance
B) capital account
C) trade balance
D) direct investments
E) portfolio investment

Question

Quizplus · Accepted Answer

The current account balance includes imports and exports of goods and services as well as unilateral transfers, such as foreign aid or remittances. The capital account includes investments and transfers of financial assets. The trade balance only reflects the difference between exports and imports of goods. Direct and portfolio investments are both types of financial investments included in the capital account.

The Balance of Payments in ______________ Shows Trade in Currently