The Balance of Payments Has to Be Shown with a Balancing

question 69

Multiple Choice

The balance of payments has to be shown with a balancing item because:

• A) foreign portfolio investment usually goes unrecorded.
• B) illegal transactions in the international trade market are not recorded.
• C) under a dirty float, the balance of payments is zero.
• D) under a fixed exchange rate regime, the balance of payments is zero.