Q141
The primary component of the current account is the.
A.
balance of trade
AnswerB.
balance of money market flows
C.
balance of capital market flows
D.
unilateral transfers
Answer: Option A
Solution
Answer: Option A
Solution:
The primary component of the current account is the balance of trade. The balance of trade is the difference between the value of a country's imports and exports for a given period. The balance of trade is the largest component of a country's balance of payments. Economists use the BOT to measure the relative strength of a country's economy.