Final answer:
The current account does not include U.S. holdings of foreign assets, but it does include net exports, net investment income, and net transfers. The correct option is C. U.S. holdings of foreign assets
Step-by-step explanation:
The current account does not include U.S. holdings of foreign assets. The components that make up the current account are net exports, which refer to the trade balance of goods and services; net investment income, which includes money received by U.S. financial investors on their foreign investments and payments to foreign investors; and net transfers, which encompass unilateral transfers such as government aid, charity spending abroad, and remittances sent by individuals without a corresponding receipt of goods or services. U.S. holdings of foreign assets, however, are part of the financial account, as they represent ownership of foreign assets and investments.
The correct option is C. U.S. holdings of foreign assets