Asked by Richy Amato on Jul 27, 2024
Verified
Which of the following is not included in the current account of a nation's balance of payments?
A) its goods exports
B) its goods imports
C) its net investment income
D) its purchases of real assets abroad.
Current Account
A component of a country's balance of payments that encompasses the trade balance, net primary income, and secondary income.
Net Investment Income
The income generated from investments after deducting all related expenses, such as interest payments, fees, and taxes.
Purchases of Real Assets
The acquisition of physical or tangible assets such as real estate, equipment, or commodities.
- Ascertain the constituents of the current account in a nation's balance of payments framework.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
D
Explanation :
Real asset purchases abroad are included in the capital account of a nation's balance of payments, not the current account, which primarily includes goods and services trade, net income from abroad, and unilateral transfers (such as foreign aid and remittances).
Learning Objectives
- Ascertain the constituents of the current account in a nation's balance of payments framework.