Asked by Ginger Parker on Jul 09, 2024
Verified
A nation's current account balance is equal to its exports less its imports of
A) goods and services.
B) goods and services, minus U.S. purchases of assets abroad.
C) goods and services, plus net investment income and net transfers.
D) goods and services, plus foreign purchases of assets in the United States.
Current Account Balance
A measure of a country's trade, earnings on foreign investments minus payments to foreign investors, and cash transfers, over a period.
Goods And Services
The combination of tangible products (goods) and intangible activities (services) offered in the marketplace.
Net Transfers
The difference between the total transfers into an economy, such as remittances and foreign aid, and the total transfers out.
- Comprehend the elements and importance of a country's trade balance.
- Gain an understanding of the relationship that exists between the current account balance and the balances of the capital and financial accounts.
Verified Answer
Learning Objectives
- Comprehend the elements and importance of a country's trade balance.
- Gain an understanding of the relationship that exists between the current account balance and the balances of the capital and financial accounts.
Related questions
In the Balance of Payments Statement, a Current Account Surplus ...
A Nation's Balance of Trade on Goods Is Equal to ...
In One Year the United States Had a Current Account ...
Explain the Relationship Between the Current Account and the Capital ...
Before the Early 1970s,we Ran a Positive Trade Balance ...