Which of the Following Statements Is Incorrect with Respect to the Balance

Multiple Choice

Which of the following statements is incorrect with respect to the balance of payments?

A) It constitutes a record of transactions between residents within one country.
B) It consists of a current account, a capital account, and an account to record omissions and errors.
C) Transactions that result in a demand for domestic currency are always entered as a credit.
D) It must balance in the aggregate, but separate accounts can show deficits or surpluses.
E) It constitutes a record of a country's trade in goods and services and financial assets.