If the current account has a negative balance of $100 and the capital 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 account balance of $80 results in a net deficit of $20, which would lead to a decrease in official reserves by $20 to balance the accounts.

If the Current Account Has a Negative Balance of $100