If a country has a current account surplus,it also has
A)a capital and financial account surplus.
B)an increase in its official reserve assets.
C)a balance of payments deficit.
D)an increase in its holding of net foreign assets.

Question

Quizplus · Accepted Answer

A current account surplus indicates that a country is exporting more than it is importing, leading to an accumulation of foreign assets or a reduction in foreign liabilities, thus increasing its net foreign assets.

If a Country Has a Current Account Surplus,it Also Has