If the overall balance in the balance of payments account is in _____, there can be an accumulation of official reserve assets by the country or a decrease in foreign official reserve holdings of the country's assets.

Question

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If the overall balance in the balance of payments account is in surplus, it means that the country has received more foreign currency than it has spent, resulting in a net inflow of foreign currency. This excess foreign currency can be used to purchase additional official reserve assets, such as foreign currency or gold, or it can be used to decrease the country's foreign official reserve holdings of assets.

If the Overall Balance in the Balance of Payments Account