Which of the following identities regarding the balance of payments must be true?
A) Current-Account Balance + Capital Account Balance + Official Reserve Balance = 0
B) Current-Account Balance + Capital Account Balance + Official Reserve Balance = 1
C) Current-Account Balance + Capital Account Balance + Merchandise Imports = 0
D) Current-Account Balance + Capital Account Balance + Net Financial Inflow = 0
Correct Answer:
Verified
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