Current account deficits are offset by
A)the liquidity balances.
B)capital account surpluses.
C)the basic balance.
D)balance of trade surpluses.

Question

Quizplus · Accepted Answer

Current account deficits can be offset by capital account surpluses, which include foreign investment in a country, loans, and other financial flows. In other words, if a country's current account is running a deficit (importing more than it exports), it can finance the deficit by attracting capital from other countries.

Current Account Deficits Are Offset by