A Country's Balance of Payments Is Sometimes Incorrectly Said to Be

question 75

Multiple Choice

A country's balance of payments is sometimes incorrectly said to be "in deficit". This often refers to a situation where

• A)total debits exceed total credits.
• B)debits exceed credits on the capital account only.
• C)the official financing account is also "in deficit".
• D)the government is increasing its stock of foreign- exchange reserves.
• E)the official financing account is in surplus.