What Is the Difference Between the Balance of Merchandise Trade

question 31

Multiple Choice

What is the difference between the balance of merchandise trade and the balance of payments?

• A)Balance of merchandise trade and balance of payments both describes the same international exchange transactions.
• B)The value of goods imported and exported is included in the balance of merchandise trade, while the balance of payments includes only capital account transactions.
• C)Only the value of goods imported and exported are included in the balance of merchandise trade, while the balance of payments includes the value of all payments to and from foreigners.
• D)The value of all goods, services, and unilateral transfers is included in the balance of merchandise trade, while the balance of payments includes both current account and capital account transactions.

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