The absolute value of a country's balance on current account will always equal its balance on capital account, although one is positive and the other negative.

Question

Quizplus · Accepted Answer

The balance on current account records the net flow of goods, services, and income into and out of a country. The balance on capital account records the net flow of financial capital into and out of a country. The absolute value of the balance on current account will always equal the balance on capital account, although one is positive and the other negative, because the two accounts must balance.

The Absolute Value of a Country's Balance on Current Account