Transactions that involve currently produced goods and services, including the balance of goods and services and net unilateral transfers, are explicitly measured in the
A)current account.
B)capital account.
C)foreign exchange market.
D)transfers account.

Question

Quizplus · Accepted Answer

Transactions involving currently produced goods and services, including the balance of goods and services and net unilateral transfers, are explicitly measured in the current account of the balance of payments. The capital account measures transactions involving capital assets, such as foreign direct investment and portfolio investment. The foreign exchange market is a market where currencies are traded. The transfers account is a subcategory of the current account that records transfers that do not involve the provision of goods, services, or assets.

Transactions That Involve Currently Produced Goods and Services, Including the Balance