Question

A country reflects its international transactions in its _______.

• A. balance of trade
• B. balance of payment
• C. statement of account
• D. appropriation account

Answer 1

The correct option is B balance of payment

The balance of payments accounts comprises the current account and the capital account. The current account consists of the visible and invisible imports and exports of the country as well as unilateral transfers and income receipts and payments.
The capital account includes capital receipts and capital payments such as portfolio investments. It may also maintain an official reserve account to run either a fixed exchange rate regime or a managed float regime.
It accounts for the country's transactions with the rest of the world. Thus it includes a country's international trading, borrowing, and lending.