The net value of flows of goods,services,investment income,and unilateral transfers is called the:
A) Capital account balance
B) Current account balance
C) Merchandise account balance.
D) Official settlements balance.

Question

Quizplus · Accepted Answer

The net value of flows of goods, services, investment income, and unilateral transfers is referred to as the current account balance. The capital account balance measures capital transfers and the acquisition or disposal of non-produced, non-financial assets, while the merchandise account balance just measures the flow of physical goods. The official settlements balance measures the overall balance of payments, including both the current and capital account balances.

The Net Value of Flows of Goods,services,investment Income,and Unilateral Transfers