A nation's balance of payments consists of two components called the ________ account and the ________ account.
A) current; past-due
B) capital; fixed
C) current; capital
D) merchandise; services

Question

Quizplus · Accepted Answer

The balance of payments consists of the current account and the capital account. The current account measures the flow of goods and services in and out of a country, while the capital account measures the flow of capital or financial investments in and out of a country. Option A is incorrect because there is no past-due account in the balance of payments. Option B is incorrect because fixed account is not a component of the balance of payments. Option D is incorrect because merchandise and services are both components of the current account.

A Nation's Balance of Payments Consists of Two Components Called