A deficit on the current account:
A)normally causes a surplus on the capital account.
B)normally causes a deficit on the capital account.
C)has no relationship to the capital account.
D)means that a nation is not making any international transfers.

Question

Quizplus · Accepted Answer

A deficit on the current account is typically offset by a surplus on the capital account, as the two accounts together must balance in a country's balance of payments.

A Deficit on the Current Account