All of the following statements about the current account are true except It is a record of all the goods and services exchanged between two nations. It counts transfer payments between nations. It counts interest income on stocks and other financial investment. It does not count real estate. It involves trade of financial assets.

Question

Trey Keith

Business

23 November, 04:13

All of the following statements about the current account are true except It is a record of all the goods and services exchanged between two nations. It counts transfer payments between nations. It counts interest income on stocks and other financial investment. It does not count real estate. It involves trade of financial assets.

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Answers (1)

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Ishaan Tanner · Answer 1

The correct answer is letter "E": It involves trade of financial assets.

Explanation:

The current account shows the difference between savings and assets in a country. The three components of the current account are the sum of the balance of trade - goods and services exports minus imports, net income from abroad, and net current transfers. Looking at the current account of a country, we will figure out how a nation is doing, economically speaking.

Therefore, the current account does not consider the trading of financial assets.