A deficit in the current account:

Name: A deficit in the current account:
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Question

Quizplus · Accepted Answer

A deficit in the current account means that a country is importing more goods and services than it is exporting, which leads to a negative balance of payments. To finance this deficit, the country may need to borrow from foreign sources or sell its assets to foreign entities, resulting in a surplus in the financial account or official international reserves. Therefore, choice A is the correct answer.

A Deficit in the Current Account