In the context of global trade, a balance of payments deficit means that:
A) foreign borrowing and lending are excluded from calculating the balance of payments.
B) more money flows in than out.
C) more money flows out than in.
D) foreign payments and receipts are excluded from calculating the balance of payments.

Question

Quizplus · Accepted Answer

A balance of payments deficit occurs when a country spends more on foreign trade, investment, and other international transactions than it earns, resulting in more money flowing out than in.

In the Context of Global Trade, a Balance of Payments