Asked by
Tabitha Carrell
on Oct 11, 2024
Verified
When the current account is in deficit,the capital account must
A) be balanced.
B) be zero.
C) not add to the deficit.
D) have an equal and offsetting surplus.
Current Account
A component of a country's balance of payments that measures the trade in goods and services, plus net earnings on investments, and direct transfers.
Capital Account
Part of a country's balance of payments, recording the net change in asset ownership and investments.
- Acquire familiarity with the concept of balance in international settlements and the interrelation between a country's current and capital accounts.
Verified Answer
MA
Learning Objectives
- Acquire familiarity with the concept of balance in international settlements and the interrelation between a country's current and capital accounts.