What is the difference between the balance of trade and the balance of payments?

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Balance of trade includes only goods and services, while balance of payments includes all economic transactions between a country and the rest of the world

Balance of payments includes only goods and services, while balance of trade includes all economic transactions between a country and the rest of the world

Balance of trade includes both exports and imports of goods and services, while balance of payments includes only exports

Balance of payments includes both exports and imports of goods and services, while balance of trade includes only imports

answer is A.

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Detailed Solution

The correct answer is A. Balance of trade refers to the difference between the value of a country's exports and imports of goods and services, while the balance of payments refers to all economic transactions between a country and the rest of the world, including trade, investment, and transfers.

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