A negative current account indicates that a country's imports exceed its exports, which leads to a deficit. A positive capital account indicates that there is an inflow of foreign investment, which leads to a surplus. Therefore, a negative current account and a positive capital account suggest that a country is importing more than it exports, but foreign countries are investing in its economy.

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In Recent Years

Question 10

Multiple Choice

In recent years

A) our current account and capital account were both negative.
B) our current account and capital account were both positive.
C) our current account was positive and our capital account was negative.
D) our current account was negative and our capital account was positive.

Correct Answer: