A capital and financial account surplus necessarily implies
A)a balance of payments surplus.
B)a current account surplus.
C)a current account deficit.
D)an increase in the nation's official reserve assets.

Question

Quizplus · Accepted Answer

A capital and financial account surplus indicates that more capital is flowing into a country than is flowing out, which typically corresponds to a current account deficit, as the two accounts together must balance out in the balance of payments.

A Capital and Financial Account Surplus Necessarily Implies