The current account records:A) last year's flows of funds into and out of the country.B) the current flows of imports and exports of goods and services,net income earned by residents from foreign assets,and net transfer payments.C) all the foreign direct investment received by a country in a year.D) the purchase of financial assets,such as stocks and bonds,by the residents of a country in a year.E) the purchase of all real assets,such as land and housing by the citizens of a country in a year.

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Briana Ogiego · Accepted Answer

Final Answer : B, Explanation :  The current account records the current flows of imports and exports of goods and services, net income earned by residents from foreign assets and net transfer payments. Option A is incorrect because the current account records the current flows and not the past year's flows. Option C is incorrect because the current account records only the current flows of funds and not all the foreign direct investment received by a country in a year. Option D is incorrect because the purchase of financial assets by residents is not recorded in the current account, but in the capital account. Option E is incorrect because the current account only records current flows of imports and exports of goods and services, income earned by residents from foreign assets, and net transfer payments, and not the purchase of all real assets by the citizens of a country in a year.

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