Select all that applyWhich of the following are the majority of items included in the balance of payments?Multiple select question.International purchasesExports and imports of goodsInternational sales of financial and real assetsGross private domestic investmentExports and imports of servicesDomestic consumption
Question
Select all that applyWhich of the following are the majority of items included in the balance of payments?Multiple select question.International purchasesExports and imports of goodsInternational sales of financial and real assetsGross private domestic investmentExports and imports of servicesDomestic consumption
Solution
The majority of items included in the balance of payments are:
- International purchases
- Exports and imports of goods
- International sales of financial and real assets
- Exports and imports of services
Gross private domestic investment and domestic consumption are not typically included in the balance of payments. The balance of payments is a record of all transactions made between entities in one country and the rest of the world over a defined period of time, such as a quarter or a year. It includes the trade of goods and services (exports and imports), as well as financial transfers.
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