Asked by Ronald Blair on Jul 06, 2024
Verified
In the balance of payments statement, a current account surplus will be matched by a
A) capital and financial accounts deficit.
B) capital and financial accounts surplus.
C) trade deficit.
D) trade surplus.
Current Account Surplus
A situation where a country's total exports of goods, services, and transfers exceed its total imports.
Financial Accounts Deficit
A situation where a country's payments to other countries exceed its earnings from them, specifically in the realm of investment flows and financial transactions.
Capital Account
A national account that shows the net change in asset ownership for a nation, including assets in foreign investments and movements of capital.
- Familiarize oneself with the linkage between the balance of the current account and the capital and financial accounts balances.
Verified Answer
Learning Objectives
- Familiarize oneself with the linkage between the balance of the current account and the capital and financial accounts balances.
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