ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Moscow Capital Investment corporations makes a loan to a US firm
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US firms and individuals receive dividends on US investments in Latin America
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US tourists in Great Britain purchase pounds sterling
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Foreigners purchase US securities
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Detailed explanation-1: -The current account records imports and exports, as well as transfer payments.
Detailed explanation-2: -Note. A balance of payments deficit means the country imports more goods, services, and capital than it exports. It must borrow from other countries to pay for its imports.
Detailed explanation-3: -The balance of payments (BOP) transactions consist of imports and exports of goods, services, and capital, as well as transfer payments, such as foreign aid and remittances. A country’s balance of payments and its net international investment position together constitute its international accounts.
Detailed explanation-4: -The current account of the balance of payment comprises exports and imports of goods, services and unilateral transfers like remittances, gifts, donations, etc. The net value of all these constitutes the balance of the current account.