The "official reserve transactions balance" will be positive when

Question

Quizplus · Accepted Answer

The "official reserve transactions balance" is the net change in official U.S. reserve assets resulting from U.S. government purchases and sales of foreign currencies. If the current and capital accounts are in surplus, it means that the U.S. is receiving more foreign currency than it is spending on foreign assets. This excess foreign currency would be used to purchase and increase U.S. official reserve assets, resulting in a positive official reserve transactions balance. Therefore, option D is the correct answer.

The "Official Reserve Transactions Balance" Will Be Positive When