Question

A nation's balance-of-payments statement records all financial transactions between its residents and those of the rest of the world during a given period of time

A) True, the balance-of-payments statement captures all international transactions
B) False, only major financial transactions are recorded in the statement
C) Partially true, the statement focuses on trade-related transactions
D) Incorrect, the balance-of-payments statement excludes certain financial activities

Answer 1

The balance-of-payments statement records all financial transactions between a nation's residents and the rest of the world, primarily focusing on trade-related transactions.Hence, the correct answer is option C.

Step-by-step explanation:

The statement is Partially true, the statement focuses on trade-related transactions.

The balance-of-payments statement records all financial transactions between a nation's residents and those of the rest of the world during a given period of time. While it does capture all international transactions, it primarily focuses on trade-related transactions such as exports, imports, and payments for goods and services. It may exclude certain financial activities that are not directly related to trade, such as capital movements or investment flows.