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A Country's Balance of Payments Is Sometimes Incorrectly Said to Be

Question 10

Multiple Choice

A country's balance of payments is sometimes incorrectly said to be "in surplus". This usually refers to a situation where


A) credits exceed debits on the capital account only.
B) the official financing accounts show a decrease in the stocks of official reserves.
C) total credits exceed total debits.
D) the government is increasing its holding of foreign- currency reserves.
E) the official financing account is also in surplus.

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