Asked by
Sarita Thakur
on Nov 12, 2024Verified
When net unilateral transfers are added to the net exports of goods and services,the result is called the:
A) merchandise trade balance.
B) official reserve transactions account.
C) balance of payments.
D) balance on capital account.
E) balance on current account.
Net Unilateral Transfers
Financial transactions where money or goods are given without receiving anything in return, affecting a country's balance of payments, such as remittances or foreign aid.
Official Reserve
Assets held by a central bank in foreign currencies, gold, or other reserves, used to back liabilities and influence monetary policy.
Balance on Current Account
Refers to the difference in value between a country's exports and imports of goods, services, investment incomes, and transfers.
- Recognize the importance of one-sided transactions in the balance of payments for a nation.
- Identify the distinctions between current and capital accounts within the balance of payments framework.
Verified Answer
HD
Learning Objectives
- Recognize the importance of one-sided transactions in the balance of payments for a nation.
- Identify the distinctions between current and capital accounts within the balance of payments framework.