The correct option for the term previously used for the financial account.
Answer to Problem 3MCQ
Option b is correct.
Explanation of Solution
Explanation for the correct option:
b.
Financial accounts were previously known as capital accounts on the balance of payment. Therefore, option a is correct.
Explanation for incorrect options:
a.
Gross national product (GNP) refers to the term used for defining the values of goods and services instead of an account. Therefore, option a is incorrect.
c.
A
d.
The net investment represents the difference between the assets purchased and the assets sold. Therefore, option d is incorrect.
e.
Trade balance represents the net international trade. It includes the difference between the country’s export and imports. Therefore, option e is incorrect.
Balance of payment: Balance of payment is the recording of transactions that occur with one country and the rest of the world over a financial period. It records the trading of goods and services and transfers payments.
Chapter 41 Solutions
Krugman's Economics For The Ap® Course
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