The two major types of transactions that affect the international flow of money are? a. supply and demand. b. price and opportunity cost. c. balance of trade and cost-benefit analysis. d. trade in goods and services and capital flows.

The two major types of transactions that affect the international flow of money are trade in goods and services and capital flows.

Option D

Explanation:

Out of all data on international economic transaction in the US, capital flow indicators are most prone to misleads and gaps. It is the exchange in financial assets between US and foreign residents.

Over the past ten years, capital flows have even exceeded trade flows. Information on this is largely needed to study the degree of US economy's internationalisation as below,

Since net capital flows must be consistent with the balance of transactions and transfers (check account) for international goods and services, better information on cash flows would help explain the accuracy of US check account data.

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