The current account records foreign investment in the United States minus U.S. investment abroad.

Question

Quizplus · Accepted Answer

The current account records a country's transactions with the rest of the world, specifically its net trade in goods and services, its net earnings on cross-border investments, and its net transfer payments, not the difference between foreign investment in the country and its investments abroad, which is recorded in the financial account.

The Current Account Records Foreign Investment in the United States