The ________ balance is the sum of the balance of merchandise trade, services and net transfers received from the rest of the world.

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YESPYQ · Accepted Answer

Correct answer: a) Current Account. The current account reflects the balance of goods and services and net transfers received from the rest of the world. It includes transactions like the purchase of goods and machinery, as well as investments made. The capital account, on the other hand, includes capital transactions such as investments in assets. Together, the capital and current accounts constitute the Balance of Payments, which records a country's economic transactions with the rest of the world. Hence, the correct answer is "Current Account."

The ________ balance is the sum of the balance of merchandise trade, services and net transfers received from the rest o…

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