Asked by Bethany Allen on May 18, 2024
Verified
Which of the following is included in the calculation of the balance of trade?
A) Payments between governments
B) Investing activities
C) Purchases of goods and services
D) All of the above are included.
E) None of the above is included.
Balance Of Trade
The difference between imports from and exports to another country. If imports are larger a trade deficit exists. If exports are larger there is a trade surplus.
Investing Activities
Transactions and events related to the acquisition and disposal of long-term assets and investments, reported in the cash flow statement.
- Understand the balance of trade and how international transactions are accounted for.
Verified Answer
GN
godfred nyameMay 19, 2024
Final Answer :
C
Explanation :
The balance of trade is the difference between a country's exports and imports of goods and services. Therefore, purchases of goods and services (option C) are included in the calculation, while payments between governments (option A) and investing activities (option B) do not directly affect the balance of trade.
Learning Objectives
- Understand the balance of trade and how international transactions are accounted for.
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