If the current account has a negative balance of $100 and the capital and financial account has a positive balance of $80, there will be_________ in official reserves of _________.

Question

Quizplus · Accepted Answer

A negative current account balance of $100 and a positive capital and financial account balance of $80 results in a net outflow of $20, leading to a decrease in official reserves by $20 to balance the accounts.

If the Current Account Has a Negative Balance of $100