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Answer to Question #11950 in Macroeconomics for maggy iihuhua
Question #11950
what is included in the current account?
Expert's answer
The current account is divided into three categories - balance on merchandise
trade, balance on services, and unilateral transfers. This is one of two primary
subsets of the balance of payments. The other is the capital account. A deficit
or surplus in the current account is matched by an opposite surplus deficit in
the capital account.
trade, balance on services, and unilateral transfers. This is one of two primary
subsets of the balance of payments. The other is the capital account. A deficit
or surplus in the current account is matched by an opposite surplus deficit in
the capital account.
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