Question 43
Balance of Payments and Exchange RatesWhich of the following items does NOT belong to a country's current account in the balance of payments accounts?
- A.Merchandise exports
- B.Merchandise imports
- C.Travel
- D.Foreign currencies
- E.Insurance services.
Show the answer and explanation
Answer: D (Foreign currencies)
Explanation
Holdings of foreign currencies are reserve or capital items; goods, travel and insurance are current-account trade in goods and services.