Question

When the world went to a system of floating exchange rates, the Balance of Payments became a relic of a system of fixed exchange rates and is no longer watched by serious economic groups. True False

Answer 1

Answer:

False

Explanation:

The balance of payments includes all the economic transactions that a country has with the rest of the world, including the balance or trade (exports of goods - imports of goods), balance of services (exports of services - imports of services), capital account (net change in a nation's assets and liabilities), and total unilateral transfers (money sent out f the country vs money sent into the country).

The balance of payments is a very important economic indicator.