In the balance of payments account, the balance on current account always equals thebalance on
A) capital account
B) U.S. assets abroad account
C) merchandise exports account
D) McDonald's closes an unsuccessful restaurant in Russia
E) unilateral transfers account

Question

Quizplus · Accepted Answer

The balance on the current account is always equal to the balance on the capital account in the balance of payments, as a surplus or deficit in one account is financed or invested in the other, maintaining the accounting principle that all transactions must balance.

In the Balance of Payments Account, the Balance on Current