Question

The "balance of payments" is a record of all economic transactions between the residents of a country and the rest of the world. It is divided into the current and capital accounts. Current accounts include all of the following except:

A) balance on goods.
B) portfolio investments.
C) balance on services.
D) goods imports.
E) goods exports.

Answer 1

The balance of payments is a record of economic transactions between a country and the rest of the world. The portfolio investments fall under the capital account, not the current accounts.

Step-by-step explanation:

The balance of payments is a record of all economic transactions between the residents of a country and the rest of the world. It is divided into the current and capital accounts. The current accounts include balance on goods, balance on services, goods imports, and goods exports. However, portfolio investments are not part of the current accounts; they fall under the capital account.