In the balance of payments statement, a current account surplus will be matched by a
A)capital and financial accounts deficit.
B)capital and financial accounts surplus.
C)trade deficit.
D)trade surplus.

Question

Quizplus · Accepted Answer

A current account surplus indicates that a country is exporting more than it is importing. This surplus must be balanced by a net outflow in the capital and financial accounts, meaning a deficit in these accounts, as funds flow out of the country to invest in foreign assets or pay off debts.

In the Balance of Payments Statement, a Current Account Surplus