Which of the following statements is false?

Question

Quizplus · Accepted Answer

A current account surplus occurs when a country's exports exceed its imports, leading to a positive balance of trade. This statement is false because it defines a capital account surplus, which occurs when a country sells more of its assets to foreign investors than it purchases from them. The overall sum of all the entries in the balance of payments must be zero due to the accounting principle of double-entry bookkeeping. A country can run a net export deficit if it imports more than it exports, and if the current account is in surplus, it may indicate that the capital account is attracting foreign investment.

Which of the Following Statements Is False