Question

In: Accounting

Which matter is considered when calculating a country's balance of payments?

Which matter is considered when calculating a country's balance of payments?

Solutions

Expert Solution

The matter that will considered when calculating a country's balance of payments is the military expenditures.

This refers to the balance of international payments. This is athe statement of all transactions made between entities in one country and the rest of the world over a defined period such as during a month, quarter, year etc.

The balance of payments summarizes all transactions that a country's individuals, companies, government bodies complete with individuals, companies, and government bodies outside the country.

These balance of payments helps to measures the inflows and outflows of money from sectors such as tourism, foreign aid, military expenditures and foreign investments as well as flows resulting from exports and imports.

Hence, the matter that will considered when calculating a country's balance of payments is the military expenditures.


Hence, the matter that will considered when calculating a country's balance of payments is the military expenditures.

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