Suppose the current account balance of an economy is -$50 billion and the capital account balance of the economy is $61 billion.Given the information, it can be said that the balance in the official settlement account is:
A)-$11 billion.
B)$11 billion.
C)-$111billion.
D)$111 billion.

Question

Quizplus · Accepted Answer

The balance in the official settlement account is the sum of the current account balance and the capital account balance. Thus, 
Official settlement account balance = Current account balance + Capital account balance
= -$50 billion + $61 billion
= $11 billion
Since the official settlement account balance is positive, the correct answer is B) $11 billion.

Suppose the Current Account Balance of an Economy Is -$50