Question

The balance of payments LOADING... A. can be either positive or​ negative, depending on the statistical discrepancy. B. is positive since we spend much more on foreign goods and services than on domestic goods and services. C. is negative since we spend much more on foreign goods and services than on domestic goods and services. D. is always zero.

Answer 1

A. can be either positive or​ negative, depending on the statistical discrepancy.

Step-by-step explanation:

The balance of payments is a tool in international trade that demonstrates the financial transaction made by a particular country with foreign countries. It i most often includes export, import and transfer payments.

Theoretically, it should be zero as a country's assets should equal the liabilities. However, in practice, that is not always the case, as the country's debits and credits can create a discrepancy in the balance of payments, which creates a surplus or deficit.