An official settlements account balance of -$5,000 means
A) official reserves of foreign currency increased by $5,000.
B) official reserves of foreign currency decreased by $5,000.
C) the country is exporting more than it is importing.
D) the country is importing more than it is exporting.

Question

Quizplus · Accepted Answer

A negative official settlements account balance indicates that the country's official reserves of foreign currency have increased, as it has been buying foreign currency to support its own currency.

An Official Settlements Account Balance of -$5,000 Means