4278EconomicsMedium
Which of the following statements is correct?
AIf the current account is in deficit then the capital account must also be in deficit
BIf the current accounts is in surplus then the capital account must also be in surplus
CThe overall sum of all entries in the balance of payments must be zero
DThe overall sum of all the entries in the balance of payments must be positive
Correct answer
C. The overall sum of all entries in the balance of payments must be zero
Explanation
The correct answer is The overall sum of all entries in the balance of payments must be zero.