If a country has a capital and financial account surplus, that country's stock of international indebtedness is
A) increasing.
B) decreasing.
C) constant.
D) zero.

Question

Quizplus · Accepted Answer

When a country has a capital and financial account surplus, it means more capital is entering the country than leaving. This typically results in an increase in the country's stock of international indebtedness, as the surplus often comes from borrowing or investments from abroad.

If a Country Has a Capital and Financial Account Surplus