A country with an official settlements balance of zero and a negative current account balance is a

Question

Quizplus · Accepted Answer

A country with a negative current account balance implies that it is importing more than it is exporting, meaning it needs to borrow from other countries to finance its deficit. The official settlements balance, which measures all transactions between a country and the rest of the world, includes not only the current account but also capital account transactions. A zero official settlements balance means that the country's capital account transactions have offset its current account deficit. Therefore, the country is still a net borrower because it has a negative current account balance.

A Country with an Official Settlements Balance of Zero and a Negative