Which of the following is true regarding the balance-of-payments records?

Which of the following is true regarding the balance-of-payments records?



A. The balance-of-payments accounts do not consider income brought in by non-resident citizens of a country.

B. The fact that assets and liabilities balance does not essentially mean that a nation is in a particularly good financial condition.

C. A balance of payments is not a record of condition.

D. A balance of payments is a determinant of condition.

E. A balance of payments records all the financial transactions of a country since 1980.


Answer: B. The fact that assets and liabilities balance does not essentially mean that a nation is in a particularly good financial condition.


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