A surplus in the current account implies
A) a surplus in the capital account.
B) a deficit in the capital account.
C) a balanced capital account.
D) there is an excess supply in the foreign currency market.

Question

Quizplus · Accepted Answer

A surplus in the current account typically implies a deficit in the capital account, as the two accounts together must balance in the balance of payments.

A Surplus in the Current Account Implies