2378EconomicsMedium
Which of the following statements is True?
AA country runs a capital account deficit if it imports more than it exports
BIf the current account is in surplus the capital account must be in deficit
CThe overall sum of all the entries in the balance of payments must be positive
DA country runs a current account surplus if it sells more of its assets abroad than it buys abroad
Correct answer
B. If the current account is in surplus the capital account must be in deficit
Explanation
The correct answer is If the current account is in surplus the capital account must be in deficit.