Final answer:
The balance of payments records all economic transactions of a country with the rest of the world, including trade in goods and services, financial capital movements, and unilateral transfers, typically over the span of a year.
Step-by-step explanation:
The balance of payments of a country is a systematic record of all economic transactions between residents of the country and the rest of the world during a given period, usually a year. This includes exports and imports of goods and services, financial capital movements, and unilateral transfers. The correct answer to the student's question is (a) all import and transactions of a during a given period normally a year, which encompasses the concept of the current account balance as well as the broader balance of payments.
The balance of trade, or trade balance, is part of the current account balance and involves the gap between a nation's dollar value of exports (i.e., goods and services sold abroad) and imports (i.e., foreign-made products and services purchased). This balance can indicate a trade surplus, deficit, or be balanced. Meanwhile, the financial capital includes international money flows that facilitate trade and investment, and unilateral transfers are one-directional payments made to entities or individuals abroad with nothing received in return.