The main component of the current account is
A) net exports.
B) the official settlements account.
C) investment both abroad and domestically.
D) net interest income.

Question

Quizplus · Accepted Answer

The current account includes the balance of trade (exports minus imports), net income from abroad (such as interest and dividends), and net transfer payments (such as foreign aid and remittances). The main component of the current account is net exports, which represents the difference between a country's exports and imports of goods and services.

The Main Component of the Current Account Is