Which of the Following Statements Is True of the Difference

Multiple Choice

Which of the following statements is true of the difference between the balance of payments and the balance of trade?

A) The balance of payments includes the balance of trade, but it also includes other financial flows such as foreign borrowing and lending.
B) The balance of trade is the sum of the balance of payments and other financial flows such as foreign borrowing and lending.
C) The balance of trade considers only the two nations participating in a transaction, while the balance of trade includes all the exports and imports of a nation.
D) The balance of trade includes only exports and imports of goods, while the balance of payments includes exports and imports of both goods and services.