The balance of payments includes which of the following? A) a country's balance of trade B) foreign investments C) foreign aid D) all of the above

Answer : D

Answer: D.It includes a country's balance of trade; foreign investments ; foreign aid  i.e. all of them.

The balance of payments, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services and income; financial claims on and liabilities to the rest of the world; and transfers such as gifts. The balance of payments classifies these transactions in two accounts – the current account and the capital account. The current account includes transactions in goods, services, investment income and current transfers, while the capital account mainly includes transactions in financial instruments. An economy’s balance of payments transactions and international investment position (IIP) together constitute its set of international accounts.

he balance of trade (BOT) is the difference between the value of a country's imports and its exports for a given period. The balance of trade is the largest component of a country's balance of payments (BOP). Economists use the BOT as a measure of the relative strength of a country's economy. The balance of trade is also referred to as the trade balance or the international trade balance.ANSWER ISD

All of the above (D)

Yes: D