A negative balance in the capital and financial account means the economy is
A) lending to the rest of the world.
B) running a capital account surplus.
C) borrowing from the rest of the world.
D) importing more than it is exporting.

Question

Quizplus · Accepted Answer

A negative balance in the capital and financial account indicates that the economy is lending more to the rest of the world than it is borrowing, resulting in a net outflow of capital.

A Negative Balance in the Capital and Financial Account Means