The sum of the current account plus the capital account plus the official settlements account equals

Question

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The sum of the current account, capital account, and official settlements account is referred to as the balance of payments. According to the balance of payments accounting identity, these three accounts must equal zero. This is because every transaction in the balance of payments has two sides - a credit and a debit - and the sum of all credits must equal the sum of all debits. Therefore, answer C, zero, is correct.

The Sum of the Current Account Plus the Capital Account