Praxis II Social Sciences Content Knowledge Exam Prep

Answer - C - The balance of payments is the summary record of all of a country’s international economic transactions within a specified period of time.

Key Takeaway: Balance of payments (or BOP) is basically the summary of all financial and other economic transactions that a country participates in internationally within a specified period of time. The BOP is divided into two accounts; the capital account balance (sometimes called net capital inflows) and the current account balance.