Question

The _______ account of the balance-of-payments statement is most likely to record all exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks.

A) Capital
B) Current
C) Financial
D) Not addressed in the passage

Answer 1

The Financial account of the balance-of-payments statement records transactions related to international financial investments, including gold and foreign exchange movements.

Step-by-step explanation:

The balance-of-payments account that is most likely to record all exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks is the Financial account. The Financial account of the balance-of-payments statement is most likely to record all exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks. This part of the balance of payments statement looks at international financial investments along with the outflow and inflow of monies from these investments, which include transactions in stocks, bonds, real estate abroad, and international borrowing and lending.