Tourism shows up on the ____ account.

Question

Quizplus · Accepted Answer

Tourism is considered a service, and services fall under the current account in the balance of payments (BOP) which records all economic transactions between a country and the rest of the world over a specific time period. The current account includes trade in goods and services, income receipts and payments, and unilateral transfers such as foreign aid. The merchandise account (A) records the trade in goods only, while the capital account (C) records capital transfers and the acquisition or disposal of non-produced, non-financial assets. The official reserves (D) account records changes in a country's holdings of foreign exchange reserves and gold.

Tourism Shows Up on the ____ Account