A positive balance in the capital and financial account suggests that a country
A) is realizing a surplus on its current account
B) is realizing a deficit on its current account
C) lending to the rest of the world
D) exports more goods and services than it imports

Question

Quizplus · Accepted Answer

A positive balance in the capital and financial account indicates that a country is receiving more investment from abroad than it is investing abroad, which often corresponds to a current account deficit.

A Positive Balance in the Capital and Financial Account Suggests