The major determinant of a country's balance of payments is its balance of trade.

Question

Quizplus · Accepted Answer

Balance of trade refers to the difference between a country's exports and imports of goods and services. It is a major component of the balance of payments, which is a record of all financial transactions between a country and the rest of the world. Therefore, the balance of trade is a major determinant of a country's balance of payments.

The Major Determinant of a Country's Balance of Payments Is