A country that has a capital account deficit:
A) is a net seller of assets.
B) is importing more goods and services than it exports.
C) also has a current account deficit.
D) is a net buyer of assets.

Question

Quizplus · Accepted Answer

A capital account deficit means that a country is buying more assets from foreigners than it is selling to them, therefore it is a net buyer of assets. It does not necessarily imply an imbalance in trade (current account deficit) or indicate whether a country is importing or exporting more goods and services.

A Country That Has a Capital Account Deficit