Asked by Peyton Reyman on May 06, 2024
Verified
Which of the following summarizes the transactions involving the international exchange of goods and services,investment income,and other miscellaneous transactions?
A) Balance of trade
B) Statistical discrepancy
C) Current account
D) Capital account
Transactions
The action of conducting business or trading between parties, typically involving the exchange of goods, services, money, or information.
International Exchange
The trading of goods, services, and currencies among countries.
Current Account
A country's balance of payments segment that encompasses the trade balance, net foreign income, and net current transfers.
- Comprehend the structure of the balance of payments along with its elements, such as the current account and capital account.
Verified Answer
DR
Dakota ReynoldsMay 10, 2024
Final Answer :
C
Explanation :
The current account summarizes the transactions involving the international exchange of goods and services, investment income, and other miscellaneous transactions. It includes exports and imports of goods and services, net income from abroad, and current transfers. The balance of trade specifically refers to the difference between exports and imports of goods only. The capital account includes transactions involving capital transfers and purchases and sales of assets between residents and non-residents. The statistical discrepancy reflects errors and omissions in the accounting of international transactions.
Learning Objectives
- Comprehend the structure of the balance of payments along with its elements, such as the current account and capital account.