Asked by Christian Poncio on Jun 15, 2024
Verified
The balance of payments summarizes the transactions that occur during a given time period between:
A) the local governments of a country and the federal government of the country.
B) the producers and consumers of all goods and services within a country.
C) individuals,firms,and government of one country and individuals,firms,and governments of the other countries.
D) two firms that operate in two different states in a country.
E) the firms in a country and the government of the country.
Balance of Payments
A record of all transactions made between entities in one country and the rest of the world over a specified period of time.
Local Governments
Administrative bodies governing smaller regions below the level of the state or central government, typically responsible for local policies and services.
Federal Government
A system of government where powers and responsibilities are divided between a national government and smaller regional governments.
- Grasp the concept of balance of payments and its components.
Verified Answer
SB
Shanelly BazalduaJun 21, 2024
Final Answer :
C
Explanation :
The balance of payments includes transactions between individuals, firms, and the government of one country with individuals, firms, and governments of other countries. It does not include transactions solely within a country, such as between producers and consumers or between two firms operating in two different states in a country. It also includes transactions with foreign governments, not just the government of the country in question.
Learning Objectives
- Grasp the concept of balance of payments and its components.