WGU Global Business CHp 4 Exam | Questions
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Which of the following it NOT a sub-account of the current account?
a. trade balance
b. services balance
c. income balance
d. financial account
e. net transfer
Choose an answer
1 Balance of Payments (BOP) 2 d. financial account
managed floating exchange rate
3 4 trade deficit
system
Don't know?
, Terms in this set (54)
Balance of Payments (BOP) a statement of account that shows all transactions
between the residents of one country and the rest
of the world for a given period of time
current account the activities of consumers and businesses in the
economy with respect to the trade balance,
services balance, income balance, and net
transfers
services balance the net of exports of services and imports of
services (examples: shipping, airlines, banking, and
tourism)
trade balance the net of merchandise exports and merchandise
imports (export +, import -) If the trade balance is
negative then there is a trade deficit.
trade deficit when merchandise imports exceed merchandise
exports for a country
income balance the net of investment income from abroad and
investment payments to foreigners
Foreign Direct Investment (FDI) encompasses purchases of fixed assets (such as
factories and equipment) abroad used in the
manufacture and sales of goods and services
balance of transfers the net of transfer payments going overseas and
inflows from abroad
and Answers | Verified Solutions | 2026 Edition |
Pass Guaranteed
Save
Practice questions for this set
Learn 1 /7 Study using Learn
Which of the following it NOT a sub-account of the current account?
a. trade balance
b. services balance
c. income balance
d. financial account
e. net transfer
Choose an answer
1 Balance of Payments (BOP) 2 d. financial account
managed floating exchange rate
3 4 trade deficit
system
Don't know?
, Terms in this set (54)
Balance of Payments (BOP) a statement of account that shows all transactions
between the residents of one country and the rest
of the world for a given period of time
current account the activities of consumers and businesses in the
economy with respect to the trade balance,
services balance, income balance, and net
transfers
services balance the net of exports of services and imports of
services (examples: shipping, airlines, banking, and
tourism)
trade balance the net of merchandise exports and merchandise
imports (export +, import -) If the trade balance is
negative then there is a trade deficit.
trade deficit when merchandise imports exceed merchandise
exports for a country
income balance the net of investment income from abroad and
investment payments to foreigners
Foreign Direct Investment (FDI) encompasses purchases of fixed assets (such as
factories and equipment) abroad used in the
manufacture and sales of goods and services
balance of transfers the net of transfer payments going overseas and
inflows from abroad
