When a country's current account balance is added to its capital account balance, the sum should be:
A) twice the current account.
B) zero.
C) positive.
D) negative.

Question

Quizplus · Accepted Answer

The balance of payments, which includes both the current account and the capital account, should always sum to zero. This is because every transaction recorded in the current account (such as imports, exports, and foreign investments) is also recorded in the capital account, but with an opposite sign. Therefore, the sum of both accounts should always equal zero.

When a Country's Current Account Balance Is Added to Its