Question

In a nation's balance of payments, which one of the following items is always recorded as a positive entry?

a. Imports of goods and services
b. Foreign aid payments
c. Trade deficit
d. Exports of goods and services

Answer 1

In a nation's balance of payments, exports of goods and services are always recorded as a positive entry.

Step-by-step explanation:

In a nation's balance of payments, exports of goods and services are always recorded as a positive entry.

The balance of trade measures the gap between a country's exports and imports. If exports exceed imports, the economy has a trade surplus. A trade surplus results in a positive entry in the balance of payments.

For example, if a country exports $100 billion worth of goods and services and imports $80 billion, there is a trade surplus of $20 billion, which is recorded as a positive entry in the balance of payments.