Question

Balance of payments is a ____ concept than balance of trade. a. broader b. more difficult c. nearly identical d. less difficult e. narrower

Answer 1

Answer:

A) broader

Explanation:

Balance of trade is simply the difference between the total amount of goods that a country exports minus the total amount of goods that the country imports.

While the balance of payments includes all the economic transactions that a country has with the rest of the world, including the balance or trade, balance of services, capital account, and total unilateral transfers.