A capital and financial account surplus that is matched by a current account surplus is a common situation for many countries.

Question

Quizplus · Accepted Answer

A capital and financial account surplus is typically matched by a current account deficit, not a surplus. This is because the balance of payments must balance, so a surplus in the capital and financial account (meaning more money is flowing into the country than out) usually means the country is importing more than it is exporting, leading to a current account deficit.

A Capital and Financial Account Surplus That Is Matched by a Current