If a nation has a current account surplus and it does not have to make any inpayments or outpayments of official reserves, it must have a:
A. surplus in its capital and financial account.
B. balance of payments deficit.
C. balance of payments surplus.
D. deficit in its capital and financial account.
D. deficit in its capital and financial account.
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Congress passed the Freedom to Farm Act in 1996. What was the purpose of this Act?
A) to encourage more people to become farmers B) to phase out the use of price ceilings in agricultural markets C) to phase out price floors and return to a free market in agriculture D) to grant free land to farmers in order to produce crops that were particularly scarce
The net amount of international reserves that move between governments to finance international transactions is called the ________ balance
A) capital account B) current account C) trade D) official reserve transactions