Suppose the balance on the ﬁnancial account is −$300 billion and the balance on the capital account is +$5 billion. The size of the current account is

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The balance of payments is composed of the financial account, the capital account, and the current account. The sum of these accounts should be zero. Therefore, if the financial account is -$300 billion and the capital account is +$5 billion, the current account must be +$295 billion to balance the accounts.

Suppose the Balance on the ﬁNancial Account Is −$300 Billion