If a country has a positive balance of payments on the current account, then it must:

Question

Quizplus · Accepted Answer

A positive balance of payments on the current account indicates that a country is exporting more than it is importing, leading to a surplus. To balance this, the financial account (which includes investments, loans, and banking transactions) typically moves in the opposite direction, showing a deficit as the country invests abroad or reduces foreign investments in the domestic economy.

If a Country Has a Positive Balance of Payments on the Current