Balance of payments deficit means that:
A)foreign borrowing and lending are excluded from calculating the balance of payments.
B)more money flows in than out.
C)more money flows out than in.
D)foreign payments and receipts are excluded from calculating the balance of payments.

Question

Quizplus · Accepted Answer

A balance of payments deficit occurs when a country's expenditures on imports, foreign aid, and other foreign payments exceed its receipts from exports, foreign investments, and other foreign receipts. This means that more money is flowing out of the country than in, leading to a negative balance.

Balance of Payments Deficit Means That