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If the Current Account Balance Has a $70 Million Deficit

Question 13

Multiple Choice

If the current account balance has a $70 million deficit and there was no change in official reserves during that year, then we know that


A) the capital and financial account balance must have a $70 million surplus.
B) the capital account balance must have a $70 million deficit.
C) net transfers were -$70 million.
D) the balance of payments must register a $70 million surplus.
E) the official settlements account balance must have a $70 million surplus.

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