Final answer:
The correct calculation for the current account balance, which is a measure that includes the trade balance and international flows of income and foreign aid, is net exports + net transfers + net interest. Option (a) is the correct answer.
Step-by-step explanation:
The current account balance is a major component of a country's balance of payments, representing the difference between the nation's savings and its investment. It includes the trade balance, which is the gap between exports and imports, but also accounts for other financial components such as net international flows of income (including earnings on overseas investments and payments made to foreign investors) and unilateral transfers (such as foreign aid and remittances).
The correct answer to the question is:
The current account balance equals net exports + net transfers + net interest.
Therefore, option (a) is the correct answer. The balance takes into account all the exports of goods and services and subtracts the imports received, adding both the net international financial flows and the net transfers, which include one-way payments.