Which of the following statement is correct? Select one: a. The current U.S. tra

ID: 1171491 • Letter: W

Question

Which of the following statement is correct?

Select one:

a. The current U.S. trade deficit will be increased eventually by a fall in the value of the dollar.

b. All the answers are incorrect.

c. The financial account records exports of goods and services as credits.

d. There are three principal balance-of-payments categories: 1. current account, 2. capital account, and 3. financial account.

e. Trade in goods and services, transfer payments, loans, and short- and long-term investments are all recorded in the financial account.

Option (d) is correct

There are 3 principal balance of payment categories: current account, capital account and financial account.

Current account records inflow and outflow of goods and services into a country.

Capital account records all international capital transfers.

Financial account records international monetary flows related to investment in business, real estate, bonds and stocks.

Hence only option (d) is correct

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