Statement I.The entire flow of U.S.dollars and foreign currencies into and out of the country constitutes the balance of payments.
Statement II.The balance of payments is part of the balance of trade.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Foreign Currencies

Money or other forms of payment issued by a country other than one's own, used to facilitate international transactions.

Balance Of Payments

A record of all economic transactions between residents of a country and the rest of the world in a given period.

Balance Of Trade

The difference between the value of a country's exports and the value of its imports over a certain period, reflecting the country's trade surplus or deficit.