7. Open Economy—International Trade and Finance

Balance Of Payments Accounts — Quiz

Test your understanding of balance of payments accounts with 5 practice questions.

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Practice Questions

Question 1

In the balance of payments, what does the current account mainly record?

Question 2

Which transaction would be recorded in the financial account of the balance of payments?

Question 3

If a country imports more goods and services than it exports, what is true about its trade balance?

Question 4

Why do the current account and financial account usually move in opposite directions?

Question 5

Which of the following is an example of an income payment in the current account?