The 'balance of payments' is a:
A)measure of the value of merchandise goods bought and sold on international trade markets.
B)summary record of a country's financial transactions with other countries.
C)record of the value of goods and services bought and sold between countries.
D)summary record of a country's purchases and sales of goods and services on international trade markets.

Question

Quizplus · Accepted Answer

The balance of payments is a summary record of a country's financial transactions with other countries, including trade in goods and services, financial flows, and transfers. It provides information on the overall position of a country's economic transactions with the rest of the world, including its current account (goods and services), capital account (investment), and financial account (financial instruments). Therefore, options A, C, and D are not fully correct as they only represent specific aspects of the balance of payments.

The 'Balance of Payments' Is A