If the Balance of Payments Accounts of a Country Shows

question 38

Multiple Choice

If the balance of payments accounts of a country shows a current account deficit, it means that:

• A)it is acting as a net lender to the rest of the world.
• B)its foreign assets are growing slower than its foreign liabilities.
• C)its foreign assets are growing faster than its foreign liabilities.
• D)its exports are higher than its imports.