The sum of current account surplus and capital account surplus is zero.

Question

Quizplus · Accepted Answer

Current account surplus and capital account surplus are two components of a country's balance of payments. The current account records transactions of goods, services, income, and transfers, while the capital account records transactions of financial assets and liabilities. According to the balance of payments accounting principle, the sum of current account balance and capital account balance must be zero, meaning that every transaction that is recorded in one account must be compensated by a transaction in the other account, resulting in a balance. Therefore, the statement is true.

The Sum of Current Account Surplus and Capital Account Surplus