Question

Which one of the following statement regarding the current account is correct?

1. It records a country's net trade in good and services.

2. It represents a country's exported and imported goods only.

3. It can never be negative as transactions with the rest of the world takes place daily.

4.It indicates a surplus when goods and services imported are greater than goods and services exported.

Answer 1

1. It records a country's net trade in good and services.