Current Account does not include:   Question 6Answer a.    Payments in connection with foreign trade   b.    Portfolio investment   c.    Net income investments in other country   d.    Interest on loans to other countrie

ENGR.ECONOMIC ANALYSIS
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Current Account does not include:


 

Question 6Answer

a.

 

 Payments in connection with foreign trade


 

b.

 

 Portfolio investment


 

c.

 

 Net income investments in other country


 

d.

 

 Interest on loans to other countries

Expert Solution
Step 1: Explain current account

The current account is a component of a country's balance of payments. It measures the trade of goods and services, net income on investments, and direct transfers. It includes the following:

  • Exports and imports of goods and services (Payments in connection with foreign trade)
  • Net income from abroad (This includes income from investments in other countries and interest on loans to other countries)
  • Direct transfers
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