The following table shows the 2012 balance of payments data for the hypothetical nation of Zabella.All figures are in billions of dollars.
Current Account:

-Refer to the above data.The "official international reserves" account indicates that Zabella:
A) added $5 billion to its stock of foreign currencies.
B) imported more merchandise than it exported.
C) exported $5 billion of its stock of foreign currencies.
D) experienced a balance of payments surplus in 2011.

Question

The following table shows the 2012 balance of payments data for the hypothetical nation of Zabella.All figures are in billions of dollars.
Current Account:
 
-Refer to the above data.The "official international reserves" account indicates that Zabella:
A) added $5 billion to its stock of foreign currencies. 
B) imported more merchandise than it exported. 
C) exported $5 billion of its stock of foreign currencies. 
D) experienced a balance of payments surplus in 2011.

Quizplus · Accepted Answer

The "official international reserves" account indicates a change in a country's holdings of foreign currencies. If Zabella exported $5 billion of its stock of foreign currencies, it means it reduced its reserves by that amount.

The Following Table Shows the 2012 Balance of Payments Data