If a country is importing more than it is exporting, the current account will have a ________ balance and the capital and financial account will have a ________ balance.
A)positive; positive
B)negative; positive
C)positive; negative
D)negative; negative

Question

Quizplus · Accepted Answer

When a country imports more than it exports, it has a trade deficit, leading to a negative current account balance. To finance this deficit, it typically attracts foreign investment, resulting in a positive balance in the capital and financial account.

If a Country Is Importing More Than It Is Exporting