Which of the following would be the most volatile component of the current account in Latin America?
A) imports of goods
B) imports of services
C) income on foreign assets
D) unilateral transfers
E) exports of goods

Question

Quizplus · Accepted Answer

Unilateral transfers are the most volatile component of the current account in Latin America as they are often influenced by factors such as remittances and foreign aid, which can fluctuate significantly over time. Imports of goods and services, as well as exports of goods, tend to be more stable, while income on foreign assets may also fluctuate but to a lesser extent compared to unilateral transfers.

Which of the Following Would Be the Most Volatile Component