If net interest and net transfers are $0, and a nation's purchases of foreign goods and services are $3.5 billion while its sales of goods and services to foreigners are $4.5 billion
A) it has a $1 billion surplus in its balance of payments.
B) it has a $1 billion deficit in its current account.
C) it has a $1 billion surplus in its current account.
D) its capital and financial account shows a surplus.

Question

Quizplus · Accepted Answer

The nation has a $1 billion surplus in its current account because its sales of goods and services to foreigners ($4.5 billion) exceed its purchases of foreign goods and services ($3.5 billion) by $1 billion.

If Net Interest and Net Transfers Are $0, and a Nation's