The balance on current account includes all of the following items EXCEPT:
A) merchandise exports minus merchandise imports
B) exports of services minus imports of services
C) income receipts minus income payments on investments
D) changes in U.S. assets owned abroad and foreign assets owned in the U.S.

Question

Quizplus · Accepted Answer

The balance on current account includes merchandise exports minus imports, exports of services minus imports of services, and income receipts minus payments on investments. However, changes in U.S. assets owned abroad and foreign assets owned in the U.S. are part of the capital account and are not included in the current account balance.

The Balance on Current Account Includes All of the Following