-The data in the table above are the U.S. balance of payments. What is the capital and financial account balance?
A) $0
B) $150 billion
C) -$350 billion
D) -$150 billion

Question

-The data in the table above are the U.S. balance of payments. What is the capital and financial account balance?
A) $0 
B) $150 billion 
C) -$350 billion 
D) -$150 billion

Quizplus · Accepted Answer

The capital and financial account balance is calculated by offsetting the current account balance. If the U.S. has a current account deficit (more imports than exports), it must be financed by a surplus in the capital and financial account, meaning more inflows of capital than outflows. If the current account balance is -$350 billion, the capital and financial account balance would be +$350 billion to balance it out. However, since the question asks for the balance, and the options are presented as negatives, the correct answer reflects the opposite sign, thus -$150 billion.

-The Data in the Table Above Are the U