If there is a current account surplus,then there is a financial account deficit.

Question

Quizplus · Accepted Answer

A current account surplus means that a country is exporting more than it is importing, resulting in a net inflow of foreign currency. This foreign currency, in turn, will flow into the financial account, which tracks international investment flows. So, a current account surplus will typically coincide with a financial account deficit as foreign investors use their surplus funds to buy domestic assets or hold cash reserves in the domestic economy.

If There Is a Current Account Surplus,then There Is a Financial