The items in a hypothetical country's balance of payments account were: current account deficit -$100; capital account surplus +$85.The value of official reserves was:
A)+$15.
B)-$15.
C)+$185.
D)-$185.

Question

Quizplus · Accepted Answer

The balance of payments must balance, so the current account deficit of -$100 and the capital account surplus of +$85 result in a net deficit of -$15, which must be offset by a change in official reserves of +$15.

The Items in a Hypothetical Country's Balance of Payments Account