Understanding the Current Account in Balance of Payments

The Balance of Payments (BOP) is a crucial concept in international economics, which records all transactions made by a country with the rest of the world over a specific time period. It consists of two main accounts: the current account and the capital and financial account. Understanding how these accounts work is essential to analyzing a country's international economic position.

Which of the following best describes the purpose of the current account in the Balance of Payments?