When the balance-of-payments accounts are recorded correctly,the combined balance of the current account,the capital account,and the reserves account must be
A)equal in magnitude to the country's national debt.
B)zero.
C)equal in magnitude to the Trade Deficit or Surplus.
D)none of the options

Question

Quizplus · Accepted Answer

According to the balance of payments accounting system, the current account, the capital account, and the reserves account must balance to zero. This means that any surplus or deficit in one of the accounts must be offset by an opposite surplus or deficit in one or both of the other accounts. Thus, the correct option is B.

When the Balance-Of-Payments Accounts Are Recorded Correctly,the Combined Balance of the Current