ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Imports
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Exports
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Transfers & Remittances
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Purchase and sale of stocks and bonds
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Detailed explanation-1: -Assets measured within the financial account include everything from direct investments to commodities (such as precious metals, like gold, or foreign currency) and securities (such as bonds or stocks).
Detailed explanation-2: -A financial transaction is an agreement, or communication, between a buyer and seller to exchange goods, services, or assets for payment. Any transaction involves a change in the status of the finances of two or more businesses or individuals.
Detailed explanation-3: -The financial account involves financial assets such as gold, currency, derivatives, special drawing rights, equities, and bonds. During a complex transaction containing capital assets and financial claims, a country may record part of a transaction in its capital account and the other part in its current account.
Detailed explanation-4: -Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets.