alleryStart learning →What is the balance of payments of a country?
AA summary of the loans it has taken from foreign banks
BA summary of the tariffs it collects on imported goods
CA summary of the goods it exports to its largest partner
DA summary of the difference between its payments and receipts
Answer & Solution
Correct answer: D. A summary of the difference between its payments and receipts
1. The balance of payments summarizes the international financial transactions of a country.
2. It shows the difference between total payments to other countries and total receipts from them.
3. It is wider than the balance of trade, which covers only exports and imports.
4. Foreign loans and tariff collections are single items rather than the whole summary.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.1 Global Trade in the United States_
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