Suppose the balance on the ﬁnancial account is +$200 billion and the balance on the capital account is +$2 billion. The size of the current account is
A) +$200 billion.
B) −$202 billion.
C) −$198 billion.
D) +$2 billion.

Question

Quizplus · Accepted Answer

The current account is the sum of the financial account and the capital account. So, the current account is +$200 billion + $2 billion = -$202 billion.

Suppose the Balance on the ﬁNancial Account Is +$200 Billion