If the current account balance is -$450 billion, the capital account balance is $440 billion, then the official settlements balance is

Question

Quizplus · Accepted Answer

The official settlements balance is the sum of the current account balance and the capital account balance, with opposite sign.

Official settlements balance = Current account balance + Capital account balance

Official settlements balance = -$450 billion + $440 billion

Official settlements balance = -$10 billion

Since the capital account is positive, the sign of the official settlements balance will be the opposite sign of the current account balance (negative), meaning the answer must be positive. Therefore, the correct choice is A) $10 billion.

If the Current Account Balance Is -$450 Billion, the Capital