A country is said to be in balance of payments equilibrium, when the sum of its current and its

Question

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Balance of payments equilibrium occurs when the sum of the current account and non-reserve capital account equals zero. This means that a country's total inflow of foreign currency from exports, foreign investments, and other international transactions is equal to its outflow of foreign currency from imports, foreign investments abroad, and other international transactions. Reserved capital accounts, deficits, and higher non-reserved capital accounts do not factor into the equilibrium calculation.

A Country Is Said to Be in Balance of Payments