Within the balance of payments,a current account deficit is offset by a:

Name: Within the balance of payments,a current account deficit is offset by a:
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

A current account deficit means that a country is importing more goods and services than it is exporting, leading to a net outflow of funds. To offset this outflow, the country must attract capital from abroad, which comes in the form of a financial account surplus. Therefore, a financial account surplus can offset a current account deficit.

Within the Balance of Payments,a Current Account Deficit Is Offset