The two parts of each transaction cannot both be recorded in the current or financial account
A)True
B)False
C)Can be true or false
D)Depends on whether it is a current account or a financial account transaction

Question

Quizplus · Accepted Answer

Transactions in the balance of payments are recorded in either the current account or the financial account, but not both simultaneously. The current account reflects the country's net income, including transactions for goods, services, and income, while the financial account records transactions that involve financial assets and liabilities between a country and the rest of the world. Each part of a transaction is recorded in the appropriate account based on its nature, not in both accounts.

The Two Parts of Each Transaction Cannot Both Be Recorded