Which of the following items is least likely to impact a nation's balance of payments?
A) Gains or losses in exchanges of international currencies
B) An increase in the GDP
C) Money spent by tourists
D) Trade deficits or surpluses
E) Foreign aid programs

Question

Quizplus · Accepted Answer

An increase in the GDP may have an impact on the domestic economy but is unlikely to have a significant impact on the nation's balance of payments, which refers to the flow of goods, services, and money between a country and its trading partners. Items such as gains or losses in currency exchange rates, trade deficits or surpluses, money spent by tourists, and foreign aid programs are all more directly linked to a nation's balance of payments.

Which of the Following Items Is Least Likely to Impact