Which of the following statements is false with respect to the net balance of the balance of payments?
A) It cannot show a surplus.
B) It cannot show a deficit.
C) It is zero because the sum of credits equals the sum of debits.
D) It can show either a surplus or a deficit.
E) A deficit in the current account would be offset by a surplus in the financial account, thus ensuring a zero net balance.

Question

Quizplus · Accepted Answer

The net balance of the balance of payments is always zero because any deficit or surplus in one account (like the current account) is offset by an opposite surplus or deficit in another account (like the financial account).

Which of the Following Statements Is False with Respect to the Net