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Multiple Choice
Which of the following is recorded in a country's balance of payments accounts?
A
Population growth rate
B
Government budget deficit
C
Domestic unemployment rates
D
Exports and imports of goods and services
Verified step by step guidance
1
Understand that the balance of payments (BOP) is a record of all economic transactions between residents of a country and the rest of the world during a specific period.
Recognize that the BOP includes transactions such as exports and imports of goods and services, financial capital flows, and transfers.
Identify that population growth rate, government budget deficit, and domestic unemployment rates are domestic economic indicators and are not recorded in the BOP accounts.
Focus on the fact that exports and imports of goods and services represent cross-border trade flows, which are key components of the current account in the BOP.
Conclude that among the options given, only exports and imports of goods and services are recorded in the country's balance of payments accounts.