If the current account has a positive balance of $100 and the capital account has a negative balance of $90, there will be _ _ in official reserves of _ _.

Question

Quizplus · Accepted Answer

The balance of payments must sum to zero. A positive current account balance of $100 and a negative capital account balance of $90 results in a net positive balance of $10, leading to an increase in official reserves by $10.

If the Current Account Has a Positive Balance of $100