[amp_mcq option1=”Current account” option2=”Balance of trade” option3=”Capital account” option4=”Balance of payments” correct=”option1″]<\/p>\n
The correct answer is: A. Current account<\/strong><\/p>\n The current account is a part of the balance of payments that records all international transactions involving the exchange of goods and services, income, and current transfers. It is a broad measure of a country’s international economic performance.<\/p>\n The current account is divided into three main components:<\/p>\n A country’s current account balance is the difference between its total receipts and payments on current account. A surplus in the current account means that the country is earning more from its international transactions than it is spending. A deficit in the current account means that the country is spending more on its international transactions than it is earning.<\/p>\n The current account balance is an important indicator of a country’s economic health. A sustained current account deficit can lead to a build-up of foreign debt, which can make a country vulnerable to financial crises.<\/p>\n [amp_mcq option1=”Current account” option2=”Balance of trade” option3=”Capital account” option4=”Balance of payments” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-45812","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n\n
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