If a country is importing more than they are exporting, the current account will have a ________ balance and the capital and financial account will have a ________ balance.
A) negative; positive
B) negative; negative
C) positive; negative
D) positive; positive

Question

Quizplus · Accepted Answer

When a country imports more than it exports, it has a trade deficit, leading to a negative balance in the current account. To finance this deficit, the country must attract capital from abroad, resulting in a positive balance in the capital and financial account.

If a Country Is Importing More Than They Are Exporting