The balance of payments includes all of the following except

Question

The balance of payments includes all of the following except

A	transfer payments for welfare.
B	goods and services sold overseas.
C	foreign purchases of domestic assets.
D	imported goods and services.
E	capital goods purchased by foreigners.

Answer 1

All balance of payments transactions are between 2 foreign entities, and a usually divided into current account transactions and financial account transactions (some texts also add capital account). The correct answer to the question is the transaction that does not involve 2 foreign entities.