The two types of business transactions that dominate the balance of payments include:
A)Real assets and financial assets
B)Fixed assets and flexible assets
C)Labor assets and capital assets
D)Financial assets and technology assets
E)Tangible assets and intangible assets

Question

Quizplus · Accepted Answer

Real assets refer to physical goods such as exports and imports of goods, while financial assets include investments and loans. These two types of transactions dominate the balance of payments as they represent the largest flows of money between countries. Other types of assets, such as labor and capital, are also important but not as dominant in the balance of payments. Similarly, technology and intangible assets are important but are not always recorded in the balance of payments.

The Two Types of Business Transactions That Dominate the Balance