Balance of payments is generally split into two major components with major business implications: (1)the current account and (2)the _____ account.

Question

Quizplus · Accepted Answer

The second major component of balance of payments is the financial account, which records all international financial transactions, including investments and loans. This component of balance of payments is of significant interest to businesses that engage in international trade and investment, as it provides insights into the flow of capital in and out of a country. A, C, D, and E are all incorrect as they do not accurately describe the second major component of balance of payments.

Balance of Payments Is Generally Split into Two Major Components