How do you measure the current account balance?
A)net exports
B)net exports - net inflow of dividends and interest payments
C)net exports + net inflow of dividends and interest payments
D)net inflow of dividends and interest payments - net exports

Question

Quizplus · Accepted Answer

The current account balance is measured by combining the balance of trade (net exports) with the net inflow/outflow of dividends and interest payments. A positive current account balance indicates that a country is exporting more goods and services than it is importing and is receiving more income from its foreign investments than it is paying out to foreign investors.

How Do You Measure the Current Account Balance