A negative balance in the merchandise account would be indicated by
A) exports that exceed imports.
B) imports that exceed exports.
C) a current account deficit.
D) decreasing transfer payments.
E) a deficit balance on investment income.

Question

Quizplus · Accepted Answer

A negative balance in the merchandise account means that imports exceed exports. This can lead to a current account deficit, but is specifically referring to the merchandise account. The other answer choices are not directly related to the merchandise account.

A Negative Balance in the Merchandise Account Would Be Indicated