If the official settlements account equals zero, the fact that the United States has a current account deficit means that the

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The official settlements account records the changes in a country's official reserves (usually gold and foreign currencies) as a result of its transactions with other countries. If it equals zero, it means that the country's official reserves have not changed. If the United States has a current account deficit (importing more goods and services than it exports), it means that it is borrowing from other countries to finance this deficit. The counterpart to this borrowing is a surplus in the capital account (an inflow of foreign investment into the United States). Therefore, Choice C is the correct answer.

If the Official Settlements Account Equals Zero, the Fact That