The current account includes transactions that involve which of the following?
A)Formerly produced goods and services
B)Capital inflows and outflows
C)Net capital flows
D)Currently produced goods and services

Question

Quizplus · Accepted Answer

The current account includes transactions related to currently produced goods and services, such as exports and imports of goods and services, income from investments, and unilateral transfers. Choice A (formerly produced goods and services) is not included in the current account, as they relate to past transactions. Choice B (capital inflows and outflows) and C (net capital flows) are part of the capital account, which is separate from the current account.

The Current Account Includes Transactions That Involve Which of the Following