which of the following terms of trade is recorded in a country's current account section of the balance of payments
Answer Details
The term of trade recorded in a country's current account section of the balance of payments is investment income.
Investment income refers to the income earned by a country on its foreign investments, such as interest and dividends from foreign stocks and bonds. This type of income is recorded in the current account because it represents a flow of money in and out of the country in the short term, rather than a long-term investment.
Foreign direct investment refers to a company or individual investing in and managing operations in a foreign country, rather than just investing in foreign stocks or bonds. Long-term capital flows refer to the movement of money into or out of a country for investment purposes over a longer period of time. Long-term loans refer to loans made for a period of more than one year.