The current account is best defined as:
A. the account that tracks the flow of domestic money into and out of foreign assets and the flow of foreign money into and out of domestic assets.
B. the account that includes transactions like imports and exports, income earned by Americans abroad, and net transfers to other countries.
C. the national income account that tracks all purchases made by businesses within the last six months.

The account that includes transactions like imports and exports, income earned by Americans abroad, and net transfers to other countries.

Explanation:

A current account can be defined as an account that record the different transactions a country carries out with another country. A current account comprises of net primary income, earnings from foreign investors that have occurred within a particular period of time.

Almost all countries are involved in trading of goods and services with another country, a current account helps to evaluate the manner in which a particular country traded their different goods with foreign markets.There tends to be a postive balance of a country exports more goods than it imports.

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