Answer to Question #289365 in Economics for Pragathi

Question

Which of the following is recorded in the U.S. balance of payments account? 1. foreign investment in the United States II. U.S. investment abroad III. the U.S. government deficit or surplus *

A) III only

OB) I and II

C) I and III

OD) I, II and III

Answer 1

The balance of payments (BOP), also known as the balance of international payments, is a statement of all transactions made between entities in one country and the rest of the world over a defined period, such as a quarter or a year. So, the U.S. government deficit or surplus is not recorded, and the correct answer is OB) I and II.