169k views
1 vote
Flow of money btw USA and other countries is called what

User Kooshka
by
8.8k points

1 Answer

7 votes

Final answer:

The flow of money between the United States and other nations involves exports, imports, and investments managed through the current and financial accounts in the balance of payments.

Step-by-step explanation:

The flow of money between the United States and other countries is made up of exports and imports of goods and services, as well as financial payments and investments. When the U.S. sells goods and services to other countries, this is considered an export, and the funds received from buyers are the financial payments flowing into the U.S. Similarly, when the U.S. buys goods and services from other countries, these are imports, and the money paid out is the financial payments leaving the U.S. Investments add another dimension where either the return on U.S. investments abroad or foreign investments in the U.S. can result in financial flows to and from the country. These transactions are recorded in the current account and financial account of the balance of payments, illustrating the economic activity between nations.

User ArchNoob
by
8.4k points