In Balance of Payments Accounting, a Deficit in Current Accounts

question 4

True/False

In balance of payments accounting, a deficit in current accounts prompts an offsetting surplus in capital accounts.

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Definitions:

Permanent Settlement

A system introduced by the British in India during the colonial period where landlords were made owners of the land, and they were required to pay a fixed revenue to the British government.

North America

North America is a continent entirely within the Northern Hemisphere and almost all within the Western Hemisphere; it is bordered by the Arctic Ocean to the north, Atlantic Ocean to the east, Pacific Ocean to the west and south, and South America and the Caribbean Sea to the southeast.

English Attempt

Refers to efforts or endeavors by English entities or individuals, usually within a historical context, such as colonization or exploration.

Prevailing Winds

Winds from a single directional pattern that dominate a region's climate.