Assertion (A): The current account measures a country trade in currently produced goods and services, along with unilateral transfers between countries.
Reason (R): Unilateral transfers are payments from one country to another that do not correspond to the purchase of any good, service, or asset.
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Balance of payments and exchange rates has come up 120 times in 7 exams since 2007.
This question is on Balance of payments accounts and the current account, part of Balance of payments and exchange rates in International Economics.
How a country's transactions with the world are recorded.
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Question from the UoH 2020 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.