The balance of payments for any nation will always:

Question

Quizplus · Accepted Answer

The balance of payments will always balance to zero because of the way transactions are recorded with a double-entry accounting system. For every payment made, there is an equal payment received, and for every import, there is an equal export. Therefore, the balance of payments will always balance out. Option A is incorrect because not all nations spend more than they produce. Option B is incorrect because not all nations have surplus wealth. Option D is incorrect because money collected or goods in transit would be reflected in the corresponding transactions.

The Balance of Payments for Any Nation Will Always