Which of the following is true regarding the balance-of-payments records?
A) The balance-of-payments accounts do not consider income brought in by non-resident citizens of a country.
B) The fact that assets and liabilities balance does not essentially mean that a nation is in a particularly good financial condition.
C) A balance of payments is not a record of condition.
D) A balance of payments is a determinant of condition.
E) A balance of payments records all the financial transactions of a country since 1980.

Question

Quizplus · Accepted Answer

A nation's balance-of-payments statement records all financial transactions between its residents and those of the rest of the world during a given period of time-usually one year. The fact that assets and liabilities balance does not mean a nation is in particularly good or poor financial condition. A balance of payments is a record of condition, not a determinant of condition.

Which of the Following Is True Regarding the Balance-Of-Payments Records